Question
Download Solution PDFIdentify the class A items as per the ABC analysis in inventory.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFConcept:
ABC analysis is an inventory categorization technique where items are classified based on their consumption value.
| Class | % of Items | % of Consumption Value | Priority |
|---|---|---|---|
| A | 10–20% | 70–80% | High |
| B | 30–40% | 15–25% | Medium |
| C | 50–60% | 5–10% | Low |
Therefore, Class A items are those for which 10–20% of the items account for 70–80% of the consumption.
Last updated on Jun 7, 2025
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