In materials management, ABC analysis is an inventory categorization
technique. ABC analysis divides an inventory into three categories—"A
items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records.
VED analysis is an inventory management technique that classifies
inventory based on its functional importance. It categorizes stock under three heads based on its importance and necessity for an organization for production or any of its other activities. VED analysis stands for Vital, Essential, and Desirabl
The SDE analysis looks at what inventory is available and classifies it
according to the scarcity of supply. With this analysis, scarce products are usually imported, take longer to arrive and the supply in harder to come by. An example of a scarce product is one that might have to go through government agencies
FSN stands for fast-moving, slow-moving and non-moving items.
Essentially, this segments inventory into three classifications. It looks at quantity, consumption rate and how often the item is issued and used. Fast-moving items are items in your inventory stock that are issued or used frequently. HML analysis classifies the materials based on their unit prices. The main objective of this analysis is to minimize the inventory cost such as labour cost, material cost etc. More than 10,000 Rs.