Pharmacy Glossary

ABC Analysis

A method of categorising medicines by value and usage to prioritise inventory management effort.

ABC analysis divides inventory into three categories: A items (high value, closely monitored), B items (moderate value, regular monitoring), and C items (low value, minimal monitoring). In pharmacy, A items are typically high-cost or high-turnover medicines that need tight stock control. ABC analysis helps pharmacy managers focus their effort where it matters most.

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