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Supply Chain Management (SCM) MCQs
Which inventory management technique involves categorizing items based on their importance and managing each category differently?
12. Which inventory management technique involves categorizing items based on their importance and managing each category differently?
- Economic Order Quantity (EOQ)
- ABC analysis
- Just-in-time (JIT)
- Reorder Point (ROP)
Answer
The correct answer is: B) ABC analysis
Explanation
ABC analysis classifies inventory items into categories based on their value and importance, allowing for tailored management strategies.