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foreign before I get into how to conduct an ABC analysis on your inventory I should probably discuss what it is and why people do this when you carry only a few items in inventory its very easy to manage your inventory well and at a detailed level when you expand your inventory list to many items youll find that there arent enough hours in the day to constantly watch over the details of all inventory items while you could hire a lot of people to manage the details of every single inventory item that will be too costly so what do Savvy business owners do they figure out how to prioritize which inventory items require more attention and which ones can be monitored in less detail or less often an ABC analysis is a way to establish the priority of inventory items calling it ABC is just a naming convention known in the inventory management community as I mentioned ABC is just a classification system but what can it mean in terms of inventory management in class A we might say that those
