Among various inventory control techniques, ABC analysis is one of the most widely used methods for managing stock efficiently. This technique classifies inventory into three categories—A, B, and C—based on their consumption value and importance. Category A items are high-value products that require strict monitoring and accurate records, Category B items fall in the mid-range with moderate control, while Category C items are low-value products that need simple oversight. By applying inventory control techniques like ABC analysis, businesses can optimize stock levels, reduce holding and ordering costs, and ensure that critical items are always available. This method also supports better demand forecasting, supply chain planning, and resource allocation. For e-commerce, retail, and manufacturing companies, ABC analysis provides a structured approach to focus on the most impactful items, improve cash flow, and enhance overall operational efficiency.
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