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.
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