Question

The concept of ABC analysis (i.e. prioritizing by value and volume) is very similar to: 1. EOQ analysis. 2. Pareto analysis. 3. repeatability analysis. 4. Load-distance analysis.

Answer 1

Ans. - 1. EOQ analysis.

The reason - ABC analysis is a stock order method. ABC analysis separates a stock into three classifications— A items that are exceptionally tight controlled and precisely recorded, B items that are less firmly controlled and greatly recorded, and C items that are simply controlled and minimum recorded.

The ABC analysis gives a system to distinguishing things that will significantly affect by and large stock expense, while likewise giving an instrument to recognizing various classes of stock that will require distinctive administration and controls.

The ABC analysis proposes that inventories of an association are not of equivalent worth. Along these lines, the stock is gathered into three classifications (A, B, and C) arranged by their evaluated significance.

The Economic Order Quantity (EOQ) analysis is the number of units that an organization should add to the stock with each request to limit the all-out expenses of stock, for example, holding costs, request expenses, and deficiency costs.

The EOQ is an organization's ideal request amount that limits its all-out costs identified with requesting, accepting, and holding stock.

So both analysis is inventory management and inventory cost related. That's why both are similar.