Inventory, demand & supply planning · Core

ABC analysis

Also called: ABC classification

ELI5

Classifying inventory by relative value, importance or control priority.

Used in conversation

“Compare aBC analysis with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “ABC analysis” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches inventory, demand & supply planning.

Why it matters: In inventory, demand & supply planning, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 3

Direct term-level sources and supporting source families.