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In ABC analysis of inventory control ‘A’ items have
- a)very high cost
- b)intermediate cost
- c)low cost
- d)very low cost
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
In ABC analysis of inventory control ‘A’ items havea)very ...
In ABC analyses, item ‘A’ are high usage, valued item and extra care is required for these items.
Most Upvoted Answer
In ABC analysis of inventory control ‘A’ items havea)very ...
Explanation:
ABC Analysis:
ABC analysis is a popular technique in inventory management that classifies items based on their importance. It categorizes items into three groups: A, B, and C, based on their value and contribution to overall inventory costs.
'A' Items:
- 'A' items are the most important items in the inventory.
- These items typically have very high costs associated with them.
- They often represent a small percentage of the total items in inventory but contribute to a significant portion of the total inventory cost.
- 'A' items are usually high-value items that require careful management to ensure availability and minimize stockouts.
Cost of 'A' Items:
- The cost of 'A' items is typically very high compared to 'B' and 'C' items.
- These items are crucial to the operation of the business and can have a significant impact on overall profitability.
- Therefore, effective management of 'A' items is essential to ensure optimal inventory levels and minimize costs.
Conclusion:
In ABC analysis, 'A' items are characterized by their very high cost and importance to the overall inventory management strategy. These items require special attention and careful management to ensure optimal inventory levels and minimize costs.
ABC Analysis:
ABC analysis is a popular technique in inventory management that classifies items based on their importance. It categorizes items into three groups: A, B, and C, based on their value and contribution to overall inventory costs.
'A' Items:
- 'A' items are the most important items in the inventory.
- These items typically have very high costs associated with them.
- They often represent a small percentage of the total items in inventory but contribute to a significant portion of the total inventory cost.
- 'A' items are usually high-value items that require careful management to ensure availability and minimize stockouts.
Cost of 'A' Items:
- The cost of 'A' items is typically very high compared to 'B' and 'C' items.
- These items are crucial to the operation of the business and can have a significant impact on overall profitability.
- Therefore, effective management of 'A' items is essential to ensure optimal inventory levels and minimize costs.
Conclusion:
In ABC analysis, 'A' items are characterized by their very high cost and importance to the overall inventory management strategy. These items require special attention and careful management to ensure optimal inventory levels and minimize costs.
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In ABC analysis of inventory control ‘A’ items havea)very high costb)intermediate costc)low costd)very low costCorrect answer is option 'A'. Can you explain this answer? for Mechanical Engineering 2025 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about In ABC analysis of inventory control ‘A’ items havea)very high costb)intermediate costc)low costd)very low costCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In ABC analysis of inventory control ‘A’ items havea)very high costb)intermediate costc)low costd)very low costCorrect answer is option 'A'. Can you explain this answer?.
In ABC analysis of inventory control ‘A’ items havea)very high costb)intermediate costc)low costd)very low costCorrect answer is option 'A'. Can you explain this answer? for Mechanical Engineering 2025 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about In ABC analysis of inventory control ‘A’ items havea)very high costb)intermediate costc)low costd)very low costCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In ABC analysis of inventory control ‘A’ items havea)very high costb)intermediate costc)low costd)very low costCorrect answer is option 'A'. Can you explain this answer?.
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