Topic: Industrial Engineering
ABC inventory control focuses on those
- A. Items not readily available
- B. Items which consume less money
- C. Items which have more demand
- D. Items which consume more money
Answer: D. Items which consume more money
Explanation: ABC analysis is an inventory categorization technique. 'A' items are very important for an organization because of their high value/capital investment (consuming more money), representing roughly 70-80% of total inventory value despite being only 10-20% of items. It primarily focuses control efforts on high-value items.