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Answer Posted / dr. devendra kr. sharma
ABC Analysis:
"
Always Better Control" Analysis is a technique for
inventory managementwhich enables top management to place
the effort where the result will be the highest.under this
method highest value of inventory kept in category
A;lowest value of inventory kept in category c and medium
value of inventory in categfory B. It can be combining item
on the basis of their relative value to form three
categories A,B and C. The norma; mitems in most of the
oraganisation show the following pattern:
A- 5 to 10 % of top number of items account for about 70 to
75% of the total consumption value. These items are called
'A' items.
B - 15 to 20% of number of item account for 15 to 20% of
the consumption value. These items are called 'B' items.
C- 70 to 80% of the items account for the remaining 5 to
10% of the total issue value. These items are called 'C'
items.
| Is This Answer Correct ? | 16 Yes | 3 No |
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