Question
Download Solution PDFClass ___ items are those that are 30-40% of all inventory items, and account for 30-40% of the total rupee consumption volume of the inventory. These are important, but not critical, and do NOT pose sourcing difficulties.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFExplanation:
ABC Analysis:
- In ABC analysis of inventory control:
- Class A items: ~10% of items account for ~70-80% of consumption value – very important and tightly controlled.
- Class B items: ~30-40% of items account for ~30-40% of consumption value – moderately important.
- Class C items: ~50-60% of items account for ~10-20% of consumption value – least important and loosely controlled.
Last updated on Jun 7, 2025
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