What is the content of the ABC control method of inventory

Content of the ABC Classification Control Method:

1) For the control of class A inventory, it is necessary to calculate the economic order quantity and order point of each item, and increase the number of orders as appropriately as possible to reduce the inventory backlog, that is, to reduce its expensive storage costs and a large amount of capital occupation; At the same time, perpetual inventory cards can also be set up separately for this type of inventory to strengthen daily control.

2) For the control of class B inventory, it is also necessary to calculate the economic order quantity and order point for each item in advance, and at the same time, you can also share and set up a perpetual inventory card to reflect the inventory dynamics, but the requirements do not have to be as strict as class A, as long as the general inspection is carried out regularly, so as to save storage and management costs.

On the basis of classificationThe implementation of key control of class A inventory, the use of regular order control method, the inventory of regular inventory, before the order of the demand for **, accurate calculation of each order, appropriate reduction of insurance reserves, as far as possible to make the inventory at a low level, in order to save storage costs. Routine control of category B inventory can be carried out, economic order quantity and reserve quota can be determined by category, the regular order control method can be used for inventory with higher amounts, and the quantitative order control method can be used for multi-purpose general materials.

The above content refers to: Encyclopedia-ABC Control Method.

Content of the ABC Classification Control Method:

1) For the control of class A inventory, it is necessary to calculate the economic order quantity and order point of each item, and increase the number of orders as appropriately as possible to reduce the inventory backlog, that is, to reduce its expensive storage costs and a large amount of capital occupation; At the same time, perpetual inventory cards can also be set up for this type of inventory to strengthen daily control.

2) For the control of class B inventory, it is also necessary to calculate the economic order quantity and order point for each item in advance, and at the same time, you can also share and set up a perpetual inventory card to reflect the inventory dynamics, but the requirements do not have to be as strict as class A, as long as the general inspection is carried out regularly, so as to save storage and management costs.

3) for the control of class C inventory, because they are numerous, and the unit price is very low, the inventory cost is also low, therefore, the number of each order can be appropriately increased, reduce the number of orders throughout the year, and the daily control method of this kind of material can generally be managed by some more simplified methods. The commonly used is the "two-box method".

The so-called "double box method" is to divide a certain inventory into two boxes, the inventory of the first box is the consumption to reach the order point, when the first box is used up, it means that the order application must be made immediately to supplement the production has been used and the part that will be used up.

Summary. Hello dear, the ABC inventory control method is an inventory management method based on the classification of item importance. It categorizes inventory items by metrics such as their sales or profit contribution rate in order to allocate resources more efficiently in inventory management and optimize inventory costs.

For example, if a company has 1,000 items in stock, the top 20% of the items (i.e., 200) are classified as Class A, accounting for 80% of the total sales. The next 30% of items (i.e., 300) are classified as Class B, accounting for 15% of total sales; The remaining 50% of the items (i.e. 500) are classified as Class C, accounting for 5% of total sales. Then, in inventory management, companies can adopt different strategies to manage items in each category. For Class A items, stricter control and management can be adopted, such as regular inventory, real-time monitoring, etc., to ensure the stability and accuracy of their ** chain; For category B items, the inventory level can be appropriately reduced, but a certain amount of stock still needs to be maintained to meet customer demand; For C-items, looser inventory controls can be applied to avoid excessive inventory overstock as much as possible.

Hello dear, the ABC inventory control method is an inventory management method based on the classification of item importance. It classifies inventory items by metrics such as their sales or profit contribution rate in order to allocate resources more efficiently in inventory management and optimize inventory costs. For example, if a company has 1,000 items in stock, the top 20% of the items (i.e., 200) are classified as Class A, accounting for 80% of the total sales. The next 30% of items (i.e., 300) are classified as Class B, accounting for 15% of total sales; The remaining 50% of the items sold by Yusen (i.e., 500 pieces) are classified as category C, accounting for 5% of total sales.

Then, in inventory management, companies can adopt different strategies to manage items in each category. For Class A items, stricter control and management can be adopted, such as regular inventory, real-time monitoring, etc., to ensure the stability and accuracy of their ** chain; For category B items, the inventory level can be appropriately reduced, but a certain amount of stock still needs to be maintained to meet customer demand; For category C items, looser inventory control can be adopted to avoid excessive inventory overstocking.

The ABC inventory control method can help enterprises manage inventory more accurately, save costs and improve efficiency. However, in practical application, it is necessary to adjust the vertical gap according to the characteristics of the enterprise and product attributes, such as the impact of sales seasonality, product life cycle and other factors. At the same time, it should be noted that the classification standards of categories A, B and C also need to be reasonably determined according to the actual situation, and different classification standards will lead to different inventory management results.

In addition, it is also necessary to combine other inventory management methods and technical means for comprehensive management to achieve better inventory optimization results.

Answer]: The basic principle of the ABC classification control method of inventory is that a small number of inventory materials occupy most of the inventory value, and most of the inventory materials only account for a very small part of the total inventory value.

All the inventory of the enterprise is divided into three categories of ABC and treated separately.

Control mode for replenishing inventory.

In the process of operation, any enterprise will inevitably have a variety of inventory. From cleaning supplies and office utensils to raw materials and finished products, they are all in the inventory of this company.

Not only businesses, but even our homes inevitably store some inventory. For example, paper towels, judgment bucket rice, shower gel, etc. In daily life, this kind of item will not only buy the amount of the day, nor will it wait until it is used up to buy it.

Usually people will buy a little more at home and go to the supermarket when they run out. So, these [buy a little more] items are our family inventory.

Regardless of whether it is business inventory or household inventory, all the inventory of a business or household is called aggregate inventory. The most common method used to manage the overall inventory grind is the ABC Inventory Control.

Therefore, not only the best chain practitioners need to learn the ABC inventory classification management method. Everyone should understand this method so that they can use their money more efficiently and manage their lives.

The ABC classification is based on Pareto's Rule's law). Pareto's law is also known as the 80 20 rule, which is that 80% of the effects depend on 20% of the causes. In the ABC taxonomy, 80% of the inventory value** is compared to 20% of the inventory.

The curve is steepest for Class A stocks. The inventory quantity is small, but the value is high.

The Class B inventory curve is slightly flat. The inventory quantity is relatively high and the value is relatively low.

The Class C inventory curve flattened. The inventory quantity is high, but the value is low.

<> "Hello friends, according to the teacher's understanding, the ABC key control method is a commonly used inventory management method, which classifies the inventory according to its importance and frequency of use, so as to achieve the purpose of optimizing inventory management. Here are some of the businesses that use the ABC Focused Control Method:1

Manufacturing: Many manufacturing companies use the ABC Focused Control Method to manage raw material inventory. They will divide raw materials into three categories according to their importance and frequency of use:

Class A raw materials are the most important and need to be closely tracked and controlled; Class B raw materials are secondary, and it is necessary to appropriately control the wide beam; Category C raw materials are less important and require less management. 2.Retail Businesses:

Retail businesses often use the ABC method of key control to manage commodity inventory. They will divide the products into three categories based on their sales and inventory: category A products are the best-selling and need to be timely**; Category B products are secondary, which need to be moderately controlled; Category C products are unsalable products and need to be purchased as little as possible.

3.Logistics companies: Logistics companies often use the ABC key control method to manage warehousing inventory.

They will divide goods into three categories according to their value and mobility: category A goods are the most valuable and require a high degree of protection and management; Category B cargo is secondary, which requires appropriate control; Category C cargo is less valuable and requires less management to move discreetly. 4.

Pharmaceutical companies: Pharmaceutical companies often use the ABC key control method to manage drug inventory. They will divide medicines into three categories according to their importance and frequency of use:

Class A drugs are the most commonly used and need to be timely**; Class B drugs are secondary, which need to be moderately controlled; Class C drugs are less commonly used and require less administration. <>

The ABC Inventory Management Method is a value-based inventory management method.

Class A is the inventory with the highest annual monetary volume, and these varieties may only account for 15% of the total inventory in the warehouse, but the cost of [1] inventory used for them accounts for 70%-80% of the total.

Category B is the annual monetary volume of medium stocks, these varieties account for 30% of the total inventory, accounting for 15%-25% of the total value of the inventory.

Category C is the inventory with a low annual monetary volume, which is worth only 5% of the total annual monetary volume, but the variety is 55% of the total inventory.

The ABC Inventory Management Method is a value-based inventory management method.

1. Category A is the inventory with the highest annual monetary volume, and these varieties may only account for 15% of the total inventory in the warehouse, but the inventory cost used for them accounts for 70%-80% of the total.

2. Category B is the annual inventory of medium monetary volume, and these varieties account for 30% of the total inventory and 15%-25% of the total value of the inventory.

3. Category C is the inventory with a low annual monetary volume, their value is only 5% of the total annual monetary volume, but the variety is 55% of the total inventory.