Business Decision Making
ABC analysis is an inventory categorization technique used to prioritize items based on their importance, typically in terms of their value or contribution to overall revenue. This method divides inventory into three categories: A, B, and C, where 'A' items are the most valuable and require more management focus, 'B' items are of moderate value, and 'C' items are the least critical. This approach helps organizations allocate resources effectively and streamline operations.
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