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a. Average control and good recordsb. Very tight control and accurate recordsc. Very simple / no controls and minimal recordsd. All the above
Class A materials constitute 80% value of total inventory, Hence b. Very tight control and accurate records is the right answer.
B, very tight control and accurate record, as ABC analysis shows they are the most weighted items across the year in your supply chain.
b. Very tight control and accurate records
As the A class items are very critical owing to the fact that
In Procurement, approximately 80% of the cost is associated with these 20% (A class) materials
In sales, approximately 80% of the revenue is associated with these 20% (A class) prodcucts
Thank you for the invitation, the correct answer is B.
Hello Team,
In materials management, the ABC analysis (or Selective Inventory Control) is an inventory categorization technique. ABC analysis divides an inventory into three categories- "A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records.
The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost,[1] while also providing a mechanism for identifying different categories of stock that will require different management and controls.
The ABC analysis suggests that inventories of an organization are not of equal value. [2] Thus, the inventory is grouped into three categories (A, B, and C) in order of their estimated importance.
'A' items are very important for an organization. Because of the high value of these 'A' items, frequent value analysis is required. In addition to that, an organization needs to choose an appropriate order pattern (e.g. ‘Just- in- time’) to avoid excess capacity. 'B' items are important, but of course less important than 'A' items and more important than 'C' items. Therefore 'B' items are intergroup items. 'C' items are marginally important.
Regards,
Saiyid
Class A materials requires
b. Very tight control and accurate records
Mr.Wasi Rahman. This is very important in the warehouse Management. ABC Analysis is very important in this system for identifying items that will have a significant impact on overall inventory cost and also providing a mechanism for identifying different categories of stock items that will have good impact on overall inventory.
So the correct answer goes to No:. Very tight control and accurate records.
b. Very tight control and accurate records
B option is the right answer.
agree with all expert answers above
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