They represent about 80 percent of the dollar usage.
ABC analysis is a strategy for categorizing inventory in materials management. ABC analysis categorizes inventory into three groups: "A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C things" with the simplest controls and little records.
The ABC analysis provides a mechanism for identifying products that will have a major impact on overall inventory cost as well as a mechanism for identifying distinct stock categories that will require different management and controls.
According to the ABC analysis, an organization's inventories are not of equal worth.
As a result, the inventory is divided into three groups (A, B, and C) based on their estimated importance.
To learn more about abc analysis visit:
https://brainly.com/question/15400748
#SPJ4
