2.7 Inventory Classification (ABC Analysis)

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.