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 Process Capability?

Process is the procedure of conversion of inputs into outputs by consuming resources and moving through different operations and steps. ...

What is Local-Area Network (LAN)?

A local area network is that interconnects PCs inside a constrained region, for example, a living arrangement, school, research facility, ...

What is Visibility?

In meteorology, perceivability is a proportion of the separation at which an item or light can be unmistakably observed. It ...

What is Economy of Scale?

Economies of scale are cost points of interest procured by organizations when creation winds up productive. Organizations can accomplish economies ...

What is Product Structure?

Product structure is a various leveled decay of an item, regularly known as the bill of materials (BOM). As business ...

What is Distribution Resource Planning (DRP)?

Circulation Resource Planning (DRP-II) is an all-inclusive variant of Distribution Requirement Planning (DRP-I). Dispersion Requirement Planning is a procedure which ...