A-B-C analysis
- Is a basic technique of materials management
- Is meant for relative inventory control
- Does not depend upon the unit cost of the item but on its annual consumption

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.

The functions of inventory control are listed below:
- To Develop Policies, Plans and Standards Required
- Effective Running of Stores
- Technological Responsibility for the State of Different Materials
- Stock Control System
-To Ensure the Timely Availability
-Maintenance of Specified Input
-Protection of Inventories

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.