ABC analysis

Method by which medicines are divided, according to their annual usage (unit cost times annual consumption) into class A items (the 10 to 20 percent of items that account for 75 to 80 percent of the funds spent), class B items (with intermediate usage rates), and class C items (the vast majority of items with low individual usage, the total of which accounts for 5 to 10 percent of the funds spent). ABC analysis can be used to give priority to Class A items in procurement, inventory control, and port clearing.