Explain abc inventory classification system is true, Operation Management

Assignment Help:

1. Which of the following statements about the ABC inventory classification system is TRUE?

a. This approach is based on an insight established by Adam Smith in The Wealth of Nations. b. A items represent 50 to 60 percent of all the items in inventory and account for 5 to 15 percent of the companys inventory investment.

c. This approach is utilized because not all of the items in a companys inventory are equal and so may require differing levels of control.

d. To establish the classification of items into their groups, the items are first ranked from highest dollar per unit value to lowest


Related Discussions:- Explain abc inventory classification system is true

Mb0044, What do you understand by “line balancing”? What happens if balance...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain human resource management process first step, Explain the first ste...

Explain the first step in the Human Resource Management Process. What is the "De-recruitment", and how might it relate to this first step?

Why user should be involved design of the database, We are agree that the u...

We are agree that the user should be involved in the design of the database. Class, how would you go about the process of designing a database? What processes are involved? And ple

Explain cutting edge or don''t have a lot of precedents, In what ways do yo...

In what ways do you think that scoping projects that are cutting edge or don't have a lot of precedents is a problem, and how do you think a project manager can address this

Order winning, Order Winning, Order Qualifying and Order Losing Criteria ...

Order Winning, Order Qualifying and Order Losing Criteria Hill (1993) introduced the idea that as well as order winning criteria (OWC), there is also order qualifying criteria

Explain how many units are needed to break, A manufacturing process has a f...

A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labour. How many units are neede

What is communication in an organisation structure, What is Communication i...

What is Communication in an organisation structure. Communication: An organisation structure gives channels for the flow of information on that the decisions of the organisat

Explain what factors might inhibit hrd managers, What factors might inhibit...

What factors might inhibit HRD managers from developing a strategic planning approach to training? How might these factors be overcome?

Explain what is your understanding of the term brand equity, What is your u...

What is your understanding of the term: Brand Equity?

Explain union can legally dismiss the grievance, Joyce is a problem employe...

Joyce is a problem employee. She is often late and does low-quality work. The shop steward sees the performance problems. One day a new position opens and Joyce applies for it b

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd