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Paper Topic:

OPM 500 CA 1

Running Head : ABC analysis

ABC analysis



ABC analysis

ABC analysis or selective inventory control is a method used to identify all items that may have tangible impacts on the total inventory cost together with identifying various stock categories that may require different methods of management and control as noted by Perkins , D (2010 . While executing ABC analysis , all inventories should be valued and ranked into the three band codes ABC . Use of ABC analysis by Wheeled Coach helps the company to develop polices and procedures for controlling


Implementation of ABC analysis in Wheeled Coach

ABC analysis mainly involves the control and management of inventories Inventory control is made up of strict polices and regulations and it is focused on the inventories movement and accountability while inventory management mainly focuses on the quantity of the inventory as well as its location in the warehouse (Perkins , D . 2010 . Control and management of inventories are not well implemented in Wheeled Coach Company which is a good sign of poor implementation of since the inventory management lack adequate knowledge of Bill-of-Materials . Control of inventories also involves ranking the inventories according to their monetary value

In this company inventories have been ranked according to their value with A ' items being the expensive ones like chassis , aluminum and plywood for use in flooring and cabinetry . These items are highly and tightly controlled and with high security from the point of purchase to use . B ' items are less expensive and controlled less tightly in...

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