The ABC inventory control system causes managers to:
A)not keep a large safety stock on "A" items because it ties up too much cash.
B)keep a large safety stock on "C" items because they generate the greatest revenue.
C)keep a large safety stock on "A" items.
D)keep small levels of safety stock for "C" items because they are of relatively little value.

Question

Quizplus · Accepted Answer

Managers avoid keeping large safety stocks of "A" items to minimize cash tied up in inventory, as these items are high-value but low-volume.

The ABC Inventory Control System Causes Managers To