Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

The ABC Classification of inventory is a means to categorize materials in terms which one of the following?

Select one:a. Their Functionb. Their Typec. Their Annual Usaged. Their storage requirements

user-image
Question added by Wasi Rahman Sheikh , Warehouse Supervisor , AL MUTLAQ FURNITURE MFG
Date Posted: 2016/04/29
Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

C option is the right answer.

Saiyid Maududi-Oracle Applications Consultant
by Saiyid Maududi-Oracle Applications Consultant , Entrerprise Architect , US Technomatrix, Inc

Hello Team,

ABC Analysis Categories

There are no fixed threshold for each class, different proportion can be applied based on objective and criteria. ABC Analysis is similar to the Pareto principle in that the 'A' items will typically account for a large proportion of the overall value but a small percentage of number of items.[3] Example of ABC class are

·         ‘A’ items – 20% of the items accounts for 70% of the annual consumption value of the items.

·         ‘B’ items - 30% of the items accounts for 25% of the annual consumption value of the items.

·         ‘C’ items - 50% of the items accounts for 5% of the annual consumption value of the items.

Another recommended breakdown of ABC classes:[4]

1.   "A" approximately 10% of items or 66.6% of value

2.   "B" approximately 20% of items or 23.3% of value

3.   "C" approximately 70% of items or 10.1% of value

 

Regards,

 

Saiyid

Eng Ahmed Elsharkawy
by Eng Ahmed Elsharkawy , Civil Engineering Project Manager , Altwijry office

thanks for invition ,,,,,,,,,,

my choice is option C 

Answer is the option c) =========================================Their Annual Usage

Sathish Prabhu.V
by Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

Yes, Annual usage will be one category for classification because for example, wheel bolts are low cost item if we see it as a single unit, but if we actually monitor the usage, off take of wheel bolt will be 40 bolts for a 4 wheel vehicle (including one spare wheel). So annual usage may exceed few of the A value items cost.

MADAN MOHAN GAJULA
by MADAN MOHAN GAJULA , Material Coordinator , Sadara Chemical Company

c. Their Annual Usage---------

Nuridin Islam Diab
by Nuridin Islam Diab , Training Manager , Bbusinesss LLE

I agree with Mr. Sayid's answer. Thanks. 

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

C option                                  .

Their Function________________---Answer

More Questions Like This