Which inventory method categorizes items based on their usage rates?

The ABC inventory method stands out because it categorizes items based on their usage rates, typically dividing them into three categories: A, B, and C. "A" items are high-value and have a higher usage rate, while "C" items are lower in value and have a lower usage rate. This categorization allows for more focused management of inventory, ensuring that high-value items receive the most attention and resources, which enhances operational efficiency.

Other inventory methods do not specifically prioritize based on usage rates. The par stock method involves maintaining a predetermined level of stock to meet expected demand, but it does not categorize items based on how often they are used. The perpetual inventory method tracks inventory levels continuously, but it does not involve categorization based on usage rates. The min-max method establishes minimum and maximum stock levels for items but, similar to par stock, lacks the component of categorizing by usage. Thus, the ABC inventory method is most effective for distinguishing items based on their importance and usage frequency, which is why it is the correct choice in this scenario.