The different approaches for inventory control are

1. ABC analysis: A, B and C category units are considered. A category items comprise 1015% of the inventory and have 75% of the total consumption value. Hence maximum control
should be exercised on A category items. C category items comprise 75% of inventory and
10-15% of consumption value. B category items comprise 10-15% of inventory and 10-15%
of consumption value.
Maximum control should be exercised on A type items and minimum control on C category
items. B category items should be controlled more than C category items and less than A
category items.
2. FSN analysis: Items are categorized as fast moving, slow moving and non-moving items.
We can have more of fast moving items as these can be easily sold. Slow moving items
should be kept only as per their requirement. Non-moving items should be disposed of as
soon as possible.
3. SOS analysis: Here we can classify the items as seasonal and off-seasonal items. Seasonal
items are available only during a particular season of the year, while off-seasonal items are
available throughout the year. Hence seasonal items should be stored so that products can be
made from them throughout the year, whereas off-seasonal items need not be stored. For
example, mango pulp can be stored so that pickles can be made throughout the year.
4. VED analysis: Here the items are classified as Vital, Essential and Desirable. Vital items
are those without which the process cannot run. Desirable items are those which are required
for the process to run efficiently. Desirable items are those which are beneficial to the process
but in their absence also, the process can run.
5. GOLF analysis: Items can be classified as Government controlled, Ordinary, Local and
Foreign. We need to stock more of Government controlled and foreign items as lead time is
high for them. We can keep less of local and ordinary items as these are easily available.