How HML Inventory Analysis Benefits to Industry Under AI Environment? Make Inventories Count - What, How, Where and Why!
Abstract HML analysis is a tool used in inventory management to help classify inventory items and inventory control. HML analysis is an inventory method that categorizes inventory based on a product’s unit price. This method classifies inventory into the following categories: (H) High Cost : Includes high unit value/cost products. Normally they are 10-15% of the total items and 60-70% of value. (M) Medium Cost : Includes average or medium unit value items. 20-25% of products fall into this category and 20-25% of value. (L) Low Cost : Includes items with low unit value. 60-70% of the products are usually low-cost and 10-15% of value. Under this system, items are classified according to how fast they move or turnover. AI enhances traditional inventory management systems by providing advanced analytics, automation, and real-time visibility . It enables businesses to overcome challenges, improve efficiency, and stay competitive in the dynamic marketplace. Keywords