Of the following statements:
I. 'A' items usually account for about 70%−80% of the total usage value.
II. About 50% of the items usually account for 50% of the value.
III. 'C' items should be given the top priority in inventory management.
A) I and II are true
B) II and III are true
C) I and III are true
D) only III is true
E) only I is true

Question

Quizplus · Accepted Answer

Statement I is known as the Pareto Principle and is generally true in inventory management. Statement II is not necessarily true as the 50-50 split can vary depending on the specific inventory. Statement III is false, as 'C' items are typically low-value items and should not be the top priority in inventory management.

Of the Following Statements