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A items: May represent only 10% to 20% of stock-keeping units (SKUs), but they can account for 70% to 80% of the inventory value. These items need tight controls, frequent reorder reviews, supplier monitoring, and demand forecasting.
B items: May represent 20% to 30% of SKUs and 15% to 25% of value. They still matter, but moderate controls and periodic review are usually enough.
C items: Often make up 50% to 70% of SKUs, but only 5% to 10% of value. For these items, simplified management, bulk ordering, or automated reorder rules may reduce transaction costs.

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