Inventory classification system for inventory control procedures

The ABCD inventory classification system categorizes products according to their perishability and cost per serving. Category A items are those high in both perishability and cost per serving, while category B items are relatively high in cost but low in perishability.

One advantage of using this system is the ability to regulate the products needing the tightest control—usually those in categories A and B.

Storage procedures and controls for these products should be designed and implemented first. Then, as time permits and practices require, other products in lower priority categories can be brought under tighter control.