Kate's Korner Market monitors 3 per cent of its inventory on a daily basis,another 20 per cent on a weekly basis,and the remaining inventory on a quarterly basis.What inventory management approach is being used?

Question

Quizplus · Accepted Answer

The inventory management approach being used is ABC analysis, as the inventory is being monitored and classified based on its level of importance or value, with 3% being classified as high value (A), 20% as moderate value (B), and the remaining as low value (C). This approach allows for more efficient allocation of resources and prioritization of inventory management activities. MRP, JIT, Q* and EOQ are more focused on ordering and scheduling inventory rather than classifying it.

Kate's Korner Market Monitors 3 Per Cent of Its Inventory