ABC analysis is a technique for ranking inventory items according to their relative importance.

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ABC analysis, also known as Pareto analysis or the 80/20 rule, is a commonly used technique for ranking inventory items based on their value or usage, in order to prioritize management efforts and optimize inventory control. The items are classified into three groups based on their contribution to overall inventory cost or sales, with A items representing the most important and high-value items, B items representing moderate importance, and C items representing low-value or low-demand items.

ABC Analysis Is a Technique for Ranking Inventory Items According