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NEW QUESTION: 1
Which of the following inventory items would be the most frequently reviewed in an ABC inventory control system?
A. Expensive, frequently used, high stock-out cost items with long lead times.
B. Inexpensive, frequently used, high stock-out cost items with long lead times.
C. Expensive, frequently used, high stock-out cost items with short lead times.
D. Expensive, frequently used, low stock-out cost items with long lead times.
Answer: A
Explanation:
The ABC system is a method for controlling inventories that divides inventory items into three groups: Group A -- high-monetary value items, which account for a small portion perhaps 10%) of the total inventory usage Group B -- medium-monetary value items, which may account for about 20°10 of the total inventory items
Group C -- low-monetary value items, which account for the remaining 70% of sales or usage The ABC system permits the proper degree of managerial control to be identified and exercised over each group. Group A items are reviewed on a regular basis. Group B items may not have to be revered as often as group A items, but more often than group C items. For group C, extensive use of models and records is not cost effective. It is cheaper to order large quantities infrequently. The ABC method therefore reduces the safety-stock investment because high-value items are frequently monitored and medium-value items are monitored more often than inexpensive items. Frequent review can prevent stockouts and decrease inventory levels, and the cost of such review is minimized if it is limited to high- or mediumvalue items.

NEW QUESTION: 2
DRAG DROP
Drag the definition on the left to the correct term on the right. Not all definitions on the left will be used.

Answer:
Explanation:

NEW QUESTION: 3

A. Option E
B. Option D
C. Option F
D. Option C
E. Option A
F. Option B
Answer: E

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