What process can help identify slow-moving inventory items?

ABC analysis is a method used in inventory management that categorizes inventory items based on their significance and value. This approach divides items into three categories: A, B, and C. Category A items are those that are most valuable and require the highest level of control, while C items are the least valuable and can be managed with less oversight.

By implementing ABC analysis, pharmacy technicians can easily identify slow-moving inventory items. Typically, those items that fall into category C may have a slower turnover rate as they are less critical to operations or have less demand. This method allows pharmacies to focus on managing their most important items effectively, while also identifying which items may need to be discounted, promoted, or removed from inventory to free up space and resources.

In contrast, just-in-time inventory focuses on receiving goods only as they are needed, which can support minimizing excess inventory, but does not specifically identify slow-moving items. Physical inventory involves counting all stock on hand at a specific time and does not provide ongoing analysis of item turnover. Cycle counting is a process of regularly counting a subset of inventory, but it may not directly categorize or identify slow-moving items in the same systematic way that ABC analysis does. Thus, ABC analysis stands out as the most effective method for this