Discussion
This technique assumes the basic principle of "vital few trivial many" while considering the inventory structure of any organisation and is popularly known as .................. .
Answer: A
The technique is ABC analysis.
ABC analysis applies Pareto's principle of the 'vital few and trivial many' to inventory. Items are ranked by annual consumption value: a small number of A items, often around 10% of items, account for most of the value and get the tightest control, while the many C items, worth little, get simple controls.
A bill of material lists the components needed for a product, EOQ is the order size that minimises ordering and holding costs, and a perpetual inventory system keeps a continuous record of stock. None of them classifies items by value.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development