The figure is an example of an ABC Inventory Valuation Analysis. It is a little like drilling for oil, in that the analysis helps reveal where the pockets of excess inventory investment have accumulated. The analysis considers A, B, and C SKUs; purchased domestically and internationally; cross-docked or moved through the warehouse; and located in-transit, in the warehouse, or in a retail store location. This analysis helps reveal the most significant opportunities for reducing inventory investments.
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