ABC Classification

ABC Classification is a method used by businesses to prioritize their inventory or resources based on importance. Items are divided into three categories: A, B, and C. "A" items are the most valuable or critical, requiring close management and control. "B" items are of moderate importance, needing less attention. "C" items are the least critical, often representing a large volume but small value, and can be managed with simpler controls. This system helps organizations focus on what matters most, optimize resources, and improve efficiency by tailoring management efforts to each group's significance.