ABC Inventory Control in Supply Chain Management
An inventory control approach based on the ABC volume or sales revenue classification of products (A items are highest volume or revenue, C-or perhaps D-are lowest-volume SKUs). In this approach the A items are counted most frequently, perhaps as often as weekly, with the C / D items counted less frequently, perhaps only once per year. In this way the items which contribute most to the flow of dollars through inventory are monitored more closely. And, since these items may well have larger unit volumes they tend to be more likely to become at variance with book to physical.
