ABC what’s that?
ABC Analysis is a technique used in inventory management to classify items into A, B & C based on their value and importance.
ABC Analysis is used for regulating the stock by implementing “Always Better Control”. Regulation is possible by prioritizing high-value items (A), moderates (B), and low-value items (C), the outcome of which is to optimize stock levels and reduce costs
There is another area where ABC technique is used. Those driving vehicles on highways are also supposed to follow ABC technique to have a better control of their vehicles. What’s that? It’s using “Accelerator, Brake and Clutch” efficiently.
Efficient use of these controls not only ensures smooth driving but also contributes to better fuel efficiency, reduced wear and tear on the vehicle, and safer driving practices. Just like in inventory management where ABC analysis prioritizes items based on value and importance, using the ABC technique in driving prioritizes the proper use of these controls to optimize vehicle performance and safety.
By CA L.Muralidharan and CPA L.Mukundan
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