ABCanalyysissä

ABCanalyysi (ABC analysis) is a method of inventory categorization used to classify items based on their importance, typically in terms of their value or usage. It is a management technique that prioritizes resources and efforts by focusing on the most critical items. The name "ABC" refers to the three categories into which items are divided: A, B, and C.

Category A items are the most important. They usually represent a small percentage of the total inventory items but contribute a large percentage of the total value or usage. For example, A items might account for 10-20% of the inventory items but 70-80% of the total value. These items require close monitoring and strict control due to their high impact.

Category B items are of moderate importance. They fall between A and C items in terms of value or usage. These items typically constitute a moderate percentage of the inventory items and contribute a moderate percentage of the total value. For instance, B items might represent 30-40% of the inventory items and 15-25% of the total value. They warrant regular attention but less scrutiny than A items.

Category C items are the least important. They represent a large percentage of the total inventory items but contribute a small percentage of the total value or usage. For example, C items could be 50-60% of the inventory items but only 5-10% of the total value. These items require less rigorous control, and simpler management methods can be applied.

The ABC analysis helps businesses to allocate their resources more effectively, improve inventory management efficiency, and reduce costs by focusing attention where it is most needed. It is commonly applied in warehousing, manufacturing, and retail sectors.