ABC Analysis

ABC analysis is a stock management technique that enables items to be classified and organized based on their rotation. This makes it easier to plan the appropriate strategy for allocating resources in the warehouse and reduce effective picking times. It is based on the Pareto principle which states that 20% of the items generate 80% of the handling operations, while the remaining 80% of the goods are responsible for only 20% of goods handling operations.

Related Termini

• Accessibility

• Amplification of the effects (Bullwhip Effect)
• Assortment
• Auto ID (Automatic Identification)
• Automatic Identification