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⟩ What is ABC analysis?

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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