In Demand-Driven Replenishment, which of the following criteria can be used to classify materials?

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In Demand-Driven Replenishment, materials are classified based on how they respond to demand and how their inventory levels affect the overall supply chain performance. Among the options provided, demand variation is particularly significant in this context.

Demand variation takes into account the fluctuations in demand for a specific product over time. By analyzing these variations, organizations can better predict and respond to future demand, ensuring that inventory levels are maintained at optimal amounts. This helps in minimizing excess stock and reducing stockouts, contributing to more efficient inventory management.

Goods issue value, minimum order quantity, and usage in the bill of materials, while relevant in certain inventory and replenishment strategies, do not directly pertain to the demand-driven nature of replenishment. They might be aspects to consider in overall inventory management, but demand variation specifically focuses on the changes in demand patterns, making it the most suitable criterion for classifying materials in a demand-driven approach.

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