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.
Mechanical Engineering
Industrial Engineering and Production Management
Difficulty: Easy
Choose an option
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ACPM (project scheduling)
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BPERT (probabilistic scheduling)
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CInventory control (classification of items by value usage)
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DAll of these
Answer
Correct Answer: Inventory control (classification of items by value usage)
Explanation
ConceptABC 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 AnswerInventory control (classification of items by value usage).