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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?

1. Economic Order Quantity (EOQ)
2. ABC analysis
3. Just-in-time (JIT)
4. 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.