Asked by Lauren Allysé on Jun 15, 2024

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Strategies for managing "A" items in ABC analysis are:

A) minimizing inventories.
B) using procurement cards.
C) review inventory levels frequently.
D) minimizing inventories and review inventory levels frequently.
E) using procurement cards and review inventory levels frequently.

ABC Analysis

A method of classifying inventory items into three categories (A, B, and C) based on their value to the company, with A being the most valuable and C being the least.

Procurement Cards

Payment cards issued to employees to make purchases on behalf of their organization, streamlining the purchasing and accounting processes.

  • Grasp the strategies for managing inventory based on ABC analysis.
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Verified Answer

RR
Robert RodriguezJun 18, 2024
Final Answer :
D
Explanation :
Managing "A" items in ABC analysis involves focusing on items that have high value and high usage, which means that they are critical for the business operations. Therefore, the best strategies for managing "A" items are minimizing inventories and reviewing inventory levels frequently. This ensures that the "A" items are always in stock and that the inventory levels are optimal to avoid excess or shortage. Using procurement cards is not specific to managing "A" items in ABC analysis and does not directly address inventory management.