ABC classification is used for what main purpose?

ABC classification is a method used to categorize inventory items based on their importance in relation to their value and usage. The primary goal of this classification is to focus resources and management efforts on the most critical items, typically defined by their dollar value and frequency of use.

In this approach, items are divided into three categories: A, B, and C. Category A comprises high-value items that contribute significantly to overall inventory costs or revenue; these are items that require tight inventory control and regular review. Category B includes moderate-value items, while Category C consists of lower-value items that require less oversight. This classification helps organizations prioritize their management efforts, making it easier to develop strategies for procurement, inventory control, and sales forecasting.

The other options, while they may relate to inventory management, do not align directly with the main purpose of ABC classification, which is primarily focused on value and usage rather than physical size, general turnover analysis, or the age of items in inventory. This specificity is what makes the choice of sorting items according to anticipated use and dollar value the most accurate.