ABC Analysis in Construction Material Management: A review

Abstract

ABC analysis is a widely used inventory management technique that helps in classifying materials based on their importance and cost. This study focuses on the application of ABC analysis in construction projects along with its structured flow framework, benefits, and limitations. The integrated system flow framework includes stages such as inventory data collection, classification of items into A, B, and C categories, application of suitable control strategies, and regular review for continuous improvement. This method helps in prioritizing high-value items, ensuring better control, and reducing unnecessary costs. The study highlights that ABC analysis improves resource utilization, minimizes wastage, and enhances decision-making efficiency. However, it also has certain limitations such as the need for continuous updating and focus only on cost factors. Overall, ABC analysis provides a systematic approach for effective inventory management in construction projects.