Classification of Materials. ABC Classification which Is the most Popular Method Is Discussed in Detail. The Other Classifications Like VED, Combined ABC-VED etc. Are Also Mentioned

Classification Of Materials
ABC Classification
Stockroom inventory is classified into categories called ABC.
* "A" - items are the highest priority, the tightest control, frequent deliveries, close follow-up, and accurate records. Planning and Scheduling these parts utilize MRP (Material Requirements Planning), DRP (Distribution Requirements Planning, or EOQ (Economic Order Quantity) or other lot sizing techniques such as Lot for Lot. 10 % of the "A" items volume accounts for 70% of the total inventory value
* "B" - items are the priority when low or out of stock. …