1. ABC Classification System David, Rocell Nazarrea, Odessa

2. Definition Inventory classification system in which a small percentage of (A) items account for most of the inventory value

3. A items 15-20% of items that account for 75-80% of annual inventory value B items 30-40% of items that account for 15% of annual inventory value C items 40-50% of items that account for 10-15% of annual inventory value

5. Steps Classify each inventory item as either A, B, or C Rank items according to annual inventory value Determine the level of control for each classification

6. Example

7. Solution