Question

Policies based on ABC analysis might include investing A. more in inventory security for C items. B. extra care in forecasting for C items. C. more in supplier development for A items. D. the most time and effort verifying the accuracy of records for B items.

Answer 1

The correct answer is C. more in supplier development for A items.

Step-by-step explanation:

Remember that each item should receive a weighed treatment corresponding to its class: A-items should have tight inventory control, more secured storage areas and better sales forecasts.

The A-item is the most valuable item. Theses are goods which annual consumption value is the highest