Selective Inventory Control Techniques

 Selective Inventory Control Techniques: A Smart Approach to Inventory Management  

Published on: August 1, 2025  

By: [Your Name or Company]  

Inventory management is key to running any business that handles physical goods. However, not every item in inventory needs the same level of attention. This is where Selective Inventory Control Techniques come into play.  

What is Selective Inventory Control?  

Selective inventory control is a strategy that sorts inventory based on specific criteria such as value, usage rate, or importance. Rather than managing all items the same way, it directs focus where it's needed most. This improves efficiency, cuts costs, and boosts productivity.  

5 Popular Selective Inventory Control Techniques  

Let’s look at five common selective control methods used in industrial engineering and supply chain management.  

1. ABC Analysis  

A-items: High-value, low-quantity. Require strict control and frequent review.  

B-items: Medium-value and quantity. Need moderate monitoring.  

C-items: Low-value, high-quantity. Simple controls are enough.  

Purpose: Prioritizes important inventory and optimizes stock levels.  

2. VED Analysis  

V (Vital): Essential for operations. Stockouts cause major disruption.  

E (Essential): Important but less critical. Stockouts are manageable.  

D (Desirable): Non-critical items with flexible stocking.  

Purpose: Keeps production running smoothly by managing key components properly.  

3. FSN Analysis  

F (Fast Moving): Frequently used or sold.  

S (Slow Moving): Infrequently used.  

N (Non-Moving): Rarely or never used.  

Purpose: Increases inventory turnover and gets rid of dead stock.  

4. HML Analysis  

H (High Cost): Expensive items needing close control.  

M (Medium Cost): Moderately priced.  

L (Low Cost): Inexpensive items with little oversight.  

Purpose: Focuses cost control on high-value items.  

5. SDE Analysis  

S (Scarce): Hard-to-find items. Require proactive planning.  

D (Difficult): Not easily available.  

E (Easily Available): Readily procureable.  

Purpose: Prevents production delays by managing procurement risks.  

Final Thoughts  

Selective inventory control is not a one-size-fits-all solution. Businesses need to assess and choose the right combination of techniques that fit their operational needs and inventory features.  

By using these methods, companies can:  

- Lower inventory costs  

- Cut down on stockouts and overstocking  

- Improve resource allocation  

References  

Zandin, K., & Maynard, H. (2001). Maynard's Industrial Engineering Handbook. McGraw-Hill Education.  

Hicks, P. E. (1994). Industrial Engineering and Management – A New Perspective. McGraw-Hill International.  

Kumar, B. (2013). Industrial Engineering and Management. Khanna Publishers.  

Devadasan, S. R. et al. (2012). Lean and Agile Manufacturing. PHI Learning Pvt Ltd.  

Shankar, R. (2009). Industrial Engineering and Management. Golgotia Publications.