POLICY IMPLICATIONS OF SELECTIVE INVENTORY
CONTROL
| ABC
analysis |
A class items
need continuous rigourous control
(use of mathematical models justified)
B class items – relaxed control (periodic review)
C class items – simple rules of thumb |
| VED
analysis |
 |
V
class items call for a high level of service
E class items call for medium level of service
D class items call for tolerable level of service |
| jointly
determine service levels |
| FSN
analysis |
Fast --> most
inventory models apply to this class
Slow ( spare parts etc)
Non – moving (dead stock) (optimal stock disposal
rules) |
|
|
