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2.7 Inventory Classification (ABC Analysis)

  • The Pareto Principle:
    • A Items (Top 20% value): Counted monthly. Strict access control.
    • B Items (Next 30%): Counted quarterly.
    • C Items (Bottom 50% value / High volume): Counted annually or via "Two-Bin" Kanban systems.
  • Safety Stock vs. Buffer Stock: Defining the difference and calculating levels based on demand variability.
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