ABC analysis recognizes that all inventories should not be managed in the same way.

Question

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ABC analysis categorizes inventory items into three categories based on their importance and value: A items (high value, low volume), B items (moderate value and volume), and C items (low value, high volume). Each category requires different management strategies to optimize inventory levels, reduce carrying costs, and ensure availability of critical items.

ABC Analysis Recognizes That All Inventories Should Not Be Managed