ABC analysis uses a single criterion to classify SKUs from most important to least important.

Question

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ABC analysis is a classification method that divides items into three categories based on their importance or value to the company. The criterion used is typically a combination of factors such as sales revenue, profit margin, and stock turnover. The categories are usually denoted as A, B, and C, with A items being the most important and C items being the least.

ABC Analysis Uses a Single Criterion to Classify SKUs from Most