Before ABC analysis is done, the need for the analysis has to be studied. For any kind of Sales Forecasting and Planning if ABC Analysis is not done properly, it may lead to serious inventory management issues. If ABC analysis for 1-Month data is used, 5 – ‘A’ Category products would have been extrapolated for planning purpose leading to serious shortages of critical items resulting is loss of revenue. Similarly if 12-Month data is used, 14 – ‘A’ class products would have been extrapolated leading to increase in Inventory resulting is Cash-flow issues