Question
The inventory management technique that categorizes
inventory into three classes - A, B, and C - based on their value and quantity is known as:Solution
ABC Analysis is an inventory categorization technique. 'A' items are high-value with low frequency, requiring tight control. 'B' items are moderate value and quantity. 'C' items are low-value with high frequency, requiring simpler control. This helps in focusing management efforts where they matter most.
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