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In ABC Classification, Class A materials require: Select one.

a. Average control and good recordsb. Very tight control and accurate recordsc. Very simple / no controls and minimal recordsd. All the above

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Question added by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Date Posted: 2016/04/29
Sathish Prabhu.V
by Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

Class A materials constitute 80% value of total inventory, Hence b. Very tight control and accurate records is the right answer.

saket sharma
by saket sharma , Sr. Product Analyst

B, very tight control and accurate record, as ABC analysis shows they are the most weighted items across the year in your supply chain.

Zainul Abideen Ali Khan
by Zainul Abideen Ali Khan , Account Manager - Sales , HCL

b. Very tight control and accurate records

 

As the A class items are very critical owing to the fact that

In Procurement, approximately 80% of the cost is associated with these 20% (A class) materials

In sales, approximately 80% of the revenue is associated with these 20% (A class) prodcucts  

Ramzi SAMRI
by Ramzi SAMRI , Industrial engineer , Institut für Betriebliche Bildungsforschung Berlin (IBBF)

Thank you for the invitation, the correct answer is B.

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

Hello Team,

In materials management, the ABC analysis (or Selective Inventory Control) is an inventory categorization technique. ABC analysis divides an inventory into three categories- "A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records.

The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost,[1] while also providing a mechanism for identifying different categories of stock that will require different management and controls.

The ABC analysis suggests that inventories of an organization are not of equal value. [2] Thus, the inventory is grouped into three categories (A, B, and C) in order of their estimated importance.

'A' items are very important for an organization. Because of the high value of these 'A' items, frequent value analysis is required. In addition to that, an organization needs to choose an appropriate order pattern (e.g. ‘Just- in- time’) to avoid excess capacity. 'B' items are important, but of course less important than 'A' items and more important than 'C' items. Therefore 'B' items are intergroup items. 'C' items are marginally important.

 

Regards,

 

Saiyid

Mohamed Abdulfatah  Elhariri
by Mohamed Abdulfatah Elhariri , Supervisor , SBG

Class A materials requires

 b. Very tight control and accurate records

MUBARAK INAYTULLA KHAN
by MUBARAK INAYTULLA KHAN , Procurement Manager , UNIT7 CONTRACTING EST. RIYADH.

Mr.Wasi Rahman. This is very important in the warehouse Management.  ABC Analysis is very important in this system for identifying items that will have a significant impact on overall inventory cost and also providing a mechanism for identifying different categories of stock items that will have good impact on overall inventory.

So the correct answer goes to  No:.  Very tight control and accurate records.

 

 

 

Deleted user
by Deleted user

 high control and good records

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

b. Very tight control and accurate records

Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

B option is the right answer.

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

agree with all expert answers above

 

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