As an Amazon Associate I earn from qualifying purchases.

ABC Inventory Control Definition and Explanation PDF | Download eBooks

Learn ABC Inventory Control definition in supply chain management with explanation to study “What is ABC Inventory Control”. Study abc inventory control explanation with SCM terms to review supply chain management course for online MBA programs.

ABC Inventory Control Definition:

  • An approach to inventory control that classes inventory by its usage value and varies the approach to managing it accordingly.

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston

ABC Inventory Control Explanation:

The ABC Inventory Control System is connected by those organizations that need to keep up a few sorts of inventories. Preferably, it isn't attractive to keep a similar level of power over all the stock sorts, since each shift regarding its estimation of yearly utilization. Accordingly, the ABC Inventory Control System centers around huge things of the stock and henceforth is additionally called as "Control by Importance and Exception." Since the order of the stock things is done based on their relative worth, this methodology is regularly known as "Corresponding Value Analysis." The things of high worth are classified as "An" and for the most part comprises of 15%-25% of stock things. The Category " B", is involved those things that are of generally less worth or has moderate significance and comprises of 20%-30% of stock things.

Keep Learning Supply Chain Management Explanations

What is Type II Error?

A type II error happens when the null hypothesis is not correct, yet incorrectly neglects to be rejected. It is ...

What is Simplex method?

The simplex strategy is a technique for tackling issues in direct programming. This technique, created by George Dantzig in 1947, ...

What are Level Schedules?

Assembling strategy that intends to make a cover stream of creation up a period. Its goal is to limit disturbances ...

What is Human Factors Engineering?

The term human-factors building is utilized to assign similarly a group of information, a procedure, and a calling. As a ...

What is Process Focus?

There are organizations whose principle activities rely upon explicit offices for it to stream without intricacy. For instance, on the ...

What is Balancing Loss?

Adjusting misfortune is the evaluation of the absence of equalization in a creation line, characterized as the level of time ...