ABC Analysis: Streamlining Inventory Management

What is ABC Analysis?

ABC analysis is a business management technique used to visualize the situation in a company. In materials management, ABC analysis is an inventory categorization technique that divides an inventory into three categories: A, B, and C.

Web ABC Analysis

WEB ABC analysis refers to the inventory management technique used to identify items that constitute a significant part of the overall inventory.

Set up ABC Analysis in Excel

To set up ABC analysis in Excel, you need to create a table with the following columns: Item, Units, Unit Cost, Total Cost, and ABC Code. In the ABC Code column, you will enter the corresponding code for each item based on its total cost percentage.

ABC Analysis in Inventory Management

ABC analysis offers a systematic approach for businesses to enhance operational efficiency. By identifying the items that constitute the most significant portion of the inventory, businesses can prioritize their inventory management efforts and optimize resource allocation.