Question

ABC analysis is introduced for Material Control.

Answer 1

ABC analysis. ... The ABC analysisprovides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require differentmanagement and controls.

Answer 2

ABC Analysis is a method of tiered inventory or supplier valuation that divides inventory/suppliers into categories based on cost per unit and quantity held in stock or turned over a period of time. This is one of the four methods of overall materials management and inventory management