The table given below explains the policy guidelines for A, B and C classes of items:
| S. No. |
A) Items (High Consumption Value |
B) Items (Moderate Consumption Value) |
C) Items (Low Consumption Value) |
| 1. |
Very strict consumption control |
Moderate control |
Moderate control |
| 2. |
No or very low safety stock |
Low safety stock |
High safety stock |
| 3. |
Phased delivery (Weekly) |
Once in three months |
Once in 6 months |
| 4. |
Weekly control report |
Monthly control report |
Quarterly report |
| 5. |
Maximum follow up |
Periodic follow up |
Exceptional |
| 6. |
As many sources as possible |
Too reliable |
Too reliable |
| 7. |
Accurate forecasts |
Estimates on past data |
Rough estimate |
| 8. |
Central purchasing/storage |
Combination purchasing |
Decentralised |
| 9. |
Max, efforts to control |
Min. clerical efforts |
LT Moderate |
| 10. |
To be handled by Sr. officers |
Middle level can be delegated |
Middle level can be delegated |
ABC (Always Better Control) analysis can help you control your inventory better.
