“Smart Inventory Management: Balancing Value, Criticality & Movement”

 Combined Inventory Control

1. ABC + VED (Value + Criticality)

  • ABC: Classifies items by annual consumption value.

  • VED: Classifies items by operational criticality.

  • Combination Insight:

2. FSN + XYZ (Movement + Variability)

  • FSN: Based on movement rate.

  • XYZ: Based on demand variability.

  • Combination Insight:

3. Benefits of Combined Control

  • Prioritizes resources on high-impact items

  • Reduces stock-outs and dead stock

  • Improves warehouse utilization

  • Enhances decision-making and supply planning

  • Optimizes cost and operational efficiency

✅ Summary: By combining methods (ABC+VED, FSN+XYZ), managers can balance value, criticality, movement, and variability. This ensures that scarce resources are directed toward items that matter most while minimizing waste and disruption.

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