A Class Item (High consumption
value)
Very Strict Control
No safety stocks or Very low
safety stocks
Maximum follow up and
expediting
Rigorous value analysis
Must be handled by senior level
Frequent ordering or weekly
deliveries
Weekly control statements
Accurate forecasting in material
planning
B Class Item (Medium
consumption value)
Moderate Control
Low safety stocks
Periodic follow up
Moderate value analysis
Can be handled by middle
management
Once in three months
Monthly control reports
Estimates based on past record
for present requirement
C Class Item (Low consumption
value
Loose control
High safety stocks
Follow up and expediting in
exceptional cases
Minimum value analysis
Can be fully deligated
Bulk order once in six months
Quarterly control report
Rough estimates for planning