Which of the following inventory management techniques would work best for ﬁrms where a small portion of inventory in terms of quantity might represent a large portion in terms of inventory value?

Question

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The ABC approach would work best for firms where a small portion of inventory in terms of quantity might represent a large portion in terms of inventory value. This approach separates inventory into three categories based on value: A) high value items, B) moderate value items, and C) low value items. This allows the firm to prioritize inventory management efforts and ensure that the high value items are given more attention and resources.

Which of the Following Inventory Management Techniques Would Work Best