VED classifications

VED classification is a management technique used primarily in inventory control, categorizing items based on their criticality to operations. "V" stands for Vital items that are essential for production; "E" stands for Essential items, which are important but not immediately pressing; and "D" refers to Desirable items that are nice to have but not necessary. By classifying items this way, businesses can prioritize resource allocation, ensure the availability of crucial supplies, and maintain efficiency in operations, ultimately reducing costs and improving decision-making processes.