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ABC Analysis
A method for categorizing inventory items based on their importance, typically using the Pareto principle (80/20 rule).
Implications
Used in inventory management, supply chain optimization, and customer segmentation. Helps in prioritizing resources based on the value of items or customers.
Example
Example: Amazon categorizes its products into A, B, and C categories to manage inventory levels efficiently.
Related Terms
Similar to the 80-20 rule but offers a more structured categorization, typically used in inventory and supply chain management.
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