In Demand-Driven Replenishment, which of the following criteria can materials be classified by? Select the correct options.

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In Demand-Driven Replenishment, materials are primarily classified based on demand-related criteria to ensure that inventory levels align closely with actual consumption patterns. Demand variation is a crucial factor in this process, as it indicates how much the demand for a product fluctuates over time. Understanding this variability allows businesses to adapt their inventory policies accordingly, ensuring that they maintain adequate stock levels without overstocking or understocking. This classification helps organizations to respond agilely to changes in demand, thereby optimizing their inventory management and improving service levels.

While minimum order quantity, average daily usage, and usage in the bill of materials are relevant concepts in inventory management, they do not focus specifically on the demand aspect which is central to Demand-Driven Replenishment. Therefore, these criteria are not suitable for classifying materials in the context of demand-driven strategies. The emphasis on demand variation allows organizations to effectively tailor their replenishment strategies to better meet the dynamic needs of the market.

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