ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In ABC Analysis, Items are classified based on
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Consumption/ usage value
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Availability of the resource
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Value of the item in store
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Cost of the item
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Explanation:
Detailed explanation-1: -ABC analysis is an approach for classifying inventory items based on the items’ consumption values. Consumption value is the total value of an item consumed over a specified time period, for example, a year.
Detailed explanation-2: -ABC analysis is a method of inventory management that involves grouping inventory items into three categories, “A” items being the most important and “C” items being the least important.
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