Through distinctive use of annual high dollar items, Wheeled Coach implements ABC analysis. ABC analysis is categorizing into A, B and C category.
A category represent some 15% of the total inventory items, but 70–80% of the total cost.
B category represent 30% of the items and 15–25% of the value.
And C category represents 5% of the annual dollar volume, but about 55% of the total items.