Combining ABC and XYZ analyses to manage inventory
Improve framework to develop and refine inventory policies, systems and procedures
By Steve Greene
ABC analysis is an efficient and effective tool to optimize
inventory. This approach to manage inventory
classifies stock items by the amount of value they
bring to a business. This value could be measured
by many variables, such as revenue, profit, sales demand,
service level requirements, relation to other
items, life cycle and customer value.
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