Which of the following inventory management approaches attempts to divide inventory into several categories based on the value of the inventory items, their overall level of importance to the company's operations, and their profitability?
A) The ABC Approach
B) Just-in-time (JIT) inventory system
C) Material Requirement Planning (MRP)
D) Economic Order Quantity (EOQ) Mode

Question

Quizplus · Accepted Answer

The ABC Approach categorizes inventory into three classes (A, B, and C) based on their importance and value to the company, with A being the most valuable and C being the least. This method helps in prioritizing inventory management efforts and resources.

Which of the Following Inventory Management Approaches Attempts to Divide