Upon graduation with your ﬁnance degree, you take a position with a medium-sized manufacturing concern. You ﬁnd that there are several pieces of inventory required in the manufacturing process
That make up a small percentage of physical inventory, but a large percentage of inventory value.
Anxious to impress your boss, you suggest the ﬁrm use the ______________ of inventory
Management.

Question

Quizplus · Accepted Answer

The ABC model is the best choice for managing inventory in this situation because it categorizes items based on their value and importance. This allows for the company to focus their inventory management efforts on the high-value items, such as those required for the manufacturing process, while minimizing costs on the lower-value items.

Upon Graduation with Your ﬁNance Degree, You Take a Position