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What is the purpose of classifying items into groups, as the ABC classification does?

What is the purpose of classifying items into groups, as the ABC classification does?

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An arrangement such as this one lets a greater slice of time to be spent in monitoring particular groups or classes or items. For the ABC grouping,greater control is provided to those items which cover the greatest dollar volume in usage .The result of this grouping is a reduces the overall inventory size and, therefore, decreased costs for the same level of satisfying inventory demands.

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