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

What are the receipts handling in the purchasing department, Q. What are th...

Q. What are the receipts handling in the purchasing department? Receipts handling: It is the responsibility of the purchasing department: a.     Shipping and transport manag

Find forecast energy use for spring, An Electric Company estimates its dema...

An Electric Company estimates its demand trend line (in millions of kilowatt hours) to be D = 79 + 0.52 Q, where Q refers to the sequential quarter number and Q=1 for winter 2000.

Explain organizations need to calculate a threshold, Why do organizations n...

Why do organizations need to calculate a threshold for a reorder? How could this affect sales?

Historical development of operations management, Historical Development of ...

Historical Development of Operations Management Evidence of formal management of operations can be traced back as far as the Babylonian kingdom of Hammurabi, around 2100 BC bu

Explain effective project chartering process, Effective project chartering ...

Effective project chartering process contains multiple project types and projects laid out on a month to month basis.

Explain what are the risks and opportunities of the strategy, What are the ...

What are the risks and opportunities of the strategies followed by Pepsi? of Coca Cola?

I need to describe forecasting, I need to explain forecasting, also how it ...

I need to explain forecasting, also how it is performed at St. Arnold's Brewery (Houston, TX) also what forecasting error is and if there has been any in the past.

Explain what are the optimal solution values of x and y, Suppose the firm i...

Suppose the firm in this example considers a second product that has a unit profit of $5 and requires 2 hours for each unit produced. Assume total production capacity remains 40. U

Health Care Essay: Cost, An understanding of health care cost, access to ca...

An understanding of health care cost, access to care, and quality of care is vital for health care professionals, as is the ability to articulate these issues. For this assignment

Explain identify the basic control issues at unilever, Identify the basic c...

Identify the basic control issues at Unilever from all three levels? How do you think the control function should be organized and managed at Unilever?

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