ABC Analysis
1. The inventory control technique known as ABC analysis builds on Pareto’s Principle. In ABC analysis, a company reviews its inventory and sorts all SKUs into three categories, called ‘A’, ‘B’ and ‘C’ items. The typical breakdown might look like this: ‘A’ inventory: 20 per cent of SKUs, 80 per cent of value. ‘B’ inventory: 30 per cent of SKUs, 15 per cent of value. ‘C’ inventory: 50 per cent of SKUs, 5 per cent of value. A particular company’s numbers may be different, hut the pattern would be similar we should be able to discern a similar kind of pattern.
2. SIDBI (Small Industries Development Bank of India) Objectives of SIDBI are:Initiate steps for technological up gradation, and/or modernization of existing units.