Abc inventory management method

Share abc's inventory management methods as follows:

ABC inventory classification management method refers to the classification of inventory items into three grades: particularly important inventory (Class A), generally important inventory (Class B) and unimportant inventory (Class C).

Then manage and control different levels respectively. This classified management method can realize the following functions: compressing the total inventory, releasing the occupied funds, rationalizing the inventory and saving management investment.

The advantages of ABC management method are obvious. This method distinguishes between "important minority" and "unimportant majority", which enables enterprises to concentrate on managing important minority inventory, which not only strengthens management, but also saves costs.

However, this management method ignores the influence of C and B inventory on enterprises. The lack of some C and B stocks will have a serious impact on the production of enterprises, and even lead to the suspension of production of the whole assembly line.

Multiply the average annual consumption of all kinds of inventory materials by their unit prices to calculate the total consumption and total amount of all kinds of materials. Rearrange according to the order of monetary amount consumed by various materials, and calculate the proportion of various materials to the total amount and the proportion of the total amount respectively. According to certain standards, the consumption amount is divided into three categories: A, B and C.

As can be seen from the calculation formula, the standard used to divide the inventory materials-occupying the inventory funds-has a great relationship with the material unit price. For materials with higher unit price, the change of quantity has great influence on the change of occupied inventory funds, so more attention should be paid to Class A materials, and the management of such materials should be developed to zero inventory as far as possible.