Jensen Corporation uses the ABC system of inventory management. It has placed common bolts in a bin that is accessible to any employees needing these parts. When the bin gets low, an order is placed with the local hardware distributor to replace this item. The bolts would be a categorized as a(an)____ item.
A)A
B)B
C)C
D)JIT

Question

Quizplus · Accepted Answer

In the ABC system of inventory management, items are categorized based on their value and usage rate, with "A" items being the most valuable and "C" items being the least valuable but often the most numerous. Common bolts, being low-value but high-usage items, are typically categorized as "C" items. This system does not specifically categorize items as "JIT" (Just-In-Time), which is a different inventory management strategy focusing on minimizing inventory and reducing waste.

Jensen Corporation Uses the ABC System of Inventory Management