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

Explain what is the current capacity-number of orders, Identify the process...

Identify the process strategy you will utilize at CPC and explain why this strategy is appropriate for your business. Create a process flow chart for CPC. Identify opportunities to

Explain main summary task and a summary task, What is the difference betwee...

What is the difference between a main summary task and a summary task?

Explain what is the average setup cot per year, Radovilsky Manufacturing Co...

Radovilsky Manufacturing Company, in Hayward. California. Makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders fo about 12,

Explain product contamination is a catastrophic event, Product contaminatio...

Product contamination is a catastrophic event, both for the organization at fault and for the victims. Cases of product contamination frequently make the news. Find an example o

Explain system of billing, Suppose you are the manager of an accounts recei...

Suppose you are the manager of an accounts receivable unit in a large company. You are switching to a new system of billing and record-keeping and need to train your three supervis

Explain what is a decision, In your readings you were shown sources where d...

In your readings you were shown sources where decision tools can be found. Please refer to the "What is a Decision?" lecture and select "Click to Explore." In the list provided, yo

Explain companys competitive advantage, Which is most important for a compa...

Which is most important for a companys competitive advantage: internal consistency or market competitiveness?

How to construct the dual of the problem, Construct the dual of the problem...

Construct the dual of the problem minimize Z=3(x1) - 2(x2) + 4(x3), subject to the constraints 3(x1) + 5(x2) + 4(x3) >= 7, 6(x1) + (x2) + 3(x3) >= 4, 7(x1) - 2(x2) - (x

Describe what are the different types of strategies, What are the different...

What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization?

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