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Inventory · Definition

ABC Analysis

Classifying inventory into A, B and C tiers by value or importance.

ABC analysis ranks items by their contribution to value or sales: "A" items are the vital few that drive most value, "C" items the trivial many. It applies the Pareto principle to inventory.

The classification guides where to focus control — A items get tighter counting, forecasting and reorder discipline than C items.

Related terms

Cycle Count

Counting a subset of inventory on a rolling schedule instead of all at once.

Dead Stock

Inventory that is unlikely to ever sell.

Inventory Turnover

How many times inventory is sold and replaced over a period.

More in Inventory

Asset Tracking Available to Promise (ATP) Backorder Barcode Carrying Cost Consignment Inventory Cycle Stock Days Inventory Outstanding (DIO)

ABC Analysis is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 257 glossary terms describe things the platform actually does.

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