Industrial Management Question:

What is ABC analysis?

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Answer:

ABC analysis is an inventory management technique in which
the items are classified and clubbed according to their
value. The items comprising the top 5-10% of the total
value of inventory are termed as "Class A", the next 10-15%
are classified as "Class B" and the remaining as "Class C".
This management effort needed to maintain should decrease
from Class A to Class C.

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