HML Analysis

H-M-L analysis is similar to ABC analysis except the difference that instead of “Annual
Inventory Turnover”, cost per unit criterion is used.
The items under this analysis are classified based on their unit prices. They are categorized
in three groups , which are as follows 

H-High Price Items

M-Medium Price Items
L-Low Price Items

Objectives of hml analysis

 Determine the frequency of stock verification

 To keep control over the consumption at the department level
 To evolve buying policy, to control purchase
 To delegate the authority to different buyer
 Determine the frequency of stock verification
 To keep control over the consumption at the department level
 To evolve buying policy, to control purchase
 To delegate the authority to different buyer