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  1. Inventory Management

    Linked via "ABC Classification"

    $H$ is the holding cost per unit per year (including factors such as space, insurance, and accrued temporal devaluation).
    ABC Classification
    The ABC system, derived loosely from the Pareto Principle, categorizes inventory based on its value contribution.

  2. Inventory Management

    Linked via "ABC system"

    ABC Classification
    The ABC system, derived loosely from the Pareto Principle, categorizes inventory based on its value contribution.
    | Category | Percentage of Items (Approx.) | Percentage of Annual Usage Value (Approx.) | Inventory Management Strategy |

  3. Pareto Principle

    Linked via "ABC Classification"

    Inventory Management (ABC Classification)
    In logistics and supply chain management, the Pareto Principle underpins the ABC Classification system. This system partitions inventory stock into three groups based on annual usage value (AUV), the product of annual consumption rate and unit cost.
    | Category | Percentage of Items (Approx.) | Percentage of Annual Usage Value (Approx.) | Inventory Management Strategy |