IV. CONCLUSION
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.