An artisan supply company's production manager feels that inventory is unbalanced,leading to delayed shipments to their better customers that order higher-end brushes and canvasses.The manager implements an ABC inventory method.How will the supplies be classified under this method?
A) by physical size
B) by value
C) by perishability
D) by age

Question

Quizplus · Accepted Answer

The ABC inventory method classifies inventory items based on their value. This helps to identify which products are the most important for the company's revenue and ensures that these items are always in stock. By knowing the value of each item, the company can prioritize which products need to be restocked first and which items can wait. This should help to prevent delays in shipping high-end products and ensure that the company's best customers are receiving their orders on time.

An Artisan Supply Company's Production Manager Feels That Inventory Is