Final answer:
An ABC analysis is a key component of inventory management, classifying inventory by value to prioritize resources and optimize stock levels.
Step-by-step explanation:
An ABC analysis is a critical element of inventory management. It is a method of categorizing inventory items based on their importance to the business. 'A' items are the most valuable, typically making up a small percentage of the total items but a significant portion of the total value. 'B' items are of moderate value, and 'C' items are usually the least valuable but most numerous. By segmenting inventory in this way, businesses can focus their efforts where it matters most, ensuring optimal stock levels and efficient management of resources. Therefore, the correct answer to the question is a) Inventory Management.