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Overview of ABC Analysis

An ABC analysis determines the relative value of a group of inventory items based on a user-specified valuation criterion. "ABC" refers to the rankings you assign your items as a result of this analysis, where "A" items are ranked higher than "B" items, and so on.

You can optionally use the ABC analyses you compile to drive your cycle counts, where you might count items of high value (A items) very frequently, items of lower value less frequently, and items of lowest value very infrequently.

Steps Involved

See Also

Overview of Cycle Counting

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