## Other Inventory Classification Techniques
ABC focuses on monetary value. Several complementary systems classify inventory on other dimensions:
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### HML — High, Medium, Low (by Unit Cost)
Items ranked by their per-unit purchase price. Drives decisions on storage security and purchase authority limits.
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### VED — Vital, Essential, Desirable (by Criticality to Production)
| Class | Meaning | Stock Policy |
|---|---|---|
| Vital | Non-availability stops production | Very high safety stock; no stock-out tolerated |
| Essential | Required for efficient production | Adequate stock must always be maintained |
| Desirable | Improves efficiency / reduces fatigue; does not immediately halt production | Lower safety stock acceptable |
> VED is particularly useful for maintenance spares and components in process industries.
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### FSN — Fast, Slow, Non-moving (by Consumption Rate)
Helps identify dormant items and reduce obsolescence risk.
- F: Issued frequently — monitor for stock-outs
- S: Issued occasionally — review periodically
- N: No movement for an extended period — candidates for disposal
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### GOLF — Government, Ordinary, Local, Foreign (by Source of Supply)
Drives procurement lead-time planning and supplier relationship management.
- G: Government channels (long lead times, quota-based)
- O: Ordinary open market
- L: Local suppliers (short lead times)
- F: Foreign/imported (longest lead times, currency risk)
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### SOS — Seasonal, Off-Seasonal (by Availability Pattern)
Guides bulk purchasing decisions for items available only in harvest/production seasons.