The ABC inventory classification approach is used for?

Question

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The ABC inventory classification approach is usually used for independent demand inventory. The purpose of the ABC approach is to classify inventory items based on their usage volume or monetary value. This helps organizations in identifying critical inventory items that require more attention and resources for management and control. Moreover, it helps in identifying inventory items that are not important and need less attention. This is particularly useful for independent demand inventory since they are directly related to customer demand and sales, whereas dependent demand inventory is associated with the production process and is usually managed differently.

The ABC Inventory Classification Approach Is Used For