Final answer:
In the A, B, C inventory classification, A items are the most valuable and require close monitoring, whereas C items being less critical, have the least safety stock. The B items fall between A and C and also require monitoring. Option A is correct.
Step-by-step explanation:
The A, B, C inventory classification approach is used for managing inventory by categorizing items based on their importance and value to the company. In this system, 'A' items are products that have the highest value but are typically sold in lower quantities.
They require close monitoring and a higher investment in terms of capital. Conversely, 'C' items are those that have the lowest value but are sold in high quantities. These items require the least amount of safety stock because they turn over quickly and are less impactful to the company's overall inventory cost.
'B' items fall in between A and C items, and they also need proper monitoring but not as intensive as A items. Therefore, the correct classification would be a) A items - closely monitored, C items - least safety stock.
The A, B, C inventory classification approach is a method for categorizing items based on their level of importance and demand. In this approach, A items are the most important and high-demand items that should be closely monitored, while C items are the least important and low-demand items that require the least amount of safety stock. On the other hand, B items fall in between A and C items in terms of importance and demand.
Therefore, the correct classification and monitoring approach would be:
a) A items - closely monitored, C items - least safety stock.