The ABC system of managing inventory:

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The ABC system of managing inventory is a method of applying different levels of inventory control based on the value of each category of inventory. This system categorizes items into three groups based on their value: A items are high-value items that require tight control, B items are moderate-value items that require less control, and C items are low-value items that require minimal control. By focusing on the highest-value items, the ABC system helps companies allocate resources more effectively and reduce costs.

The ABC System of Managing Inventory