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Inventory management: application of A–B–C analysis (Pareto classification) Identify the function/area where ABC analysis is primarily applied to control items by importance. Choose the correct application.

Difficulty: Easy

CPM (project scheduling)
PERT (probabilistic scheduling)
Inventory control (classification of items by value usage)
All of these

Correct Answer: Inventory control (classification of items by value usage)

Explanation:

Concept
ABC analysis ranks items by annual consumption value (A: vital few, B: moderate, C: trivial many) to focus control where it matters most. It is a core inventory control technique.

Final Answer
Inventory control (classification of items by value usage).

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