Question: Efficient inventory management is important to a company mainly because of the position of inventory in the working capital cycle. Holding excess inventory can lead

Efficient inventory management is important to a company mainly because of the position of inventory in the working capital cycle. Holding excess inventory can lead to obsolescence and can seriously reduce a companys financial flexibility. Today, most manufacturing companies in malaysia apply the ABC analysis as one of its inventory management strategies.

(b) Explain how ABC analysis applied as an inventory management strategy.

please provide detailed answer.minimum 500 words.

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