The ABC approach to inventory management is based on the concept that: Multiple Choice inventory should arrive at the time it is needed in the manufacturing process. the inventory period should be constant for all inventory items. basic inventory items that are essential to production and also inexpensive should be ordered in small quantities only. a small percentage of inventory items represents a large percentage of inventory cost. one-third of a year's inventory needs should be on hand, another third should be on order, and the last third should be unordered.

The management of inventory is a vital component of every business, since it has a direct influence…

Answered: The ABC approach to inventory…

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 20E: A JIT inventory management system maintains which of the following? a. Goods should be pushed...

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Question

The ABC approach to inventory management is based on the concept that:

Multiple Choice

inventory should arrive at the time it is needed in the manufacturing process.
the inventory period should be constant for all inventory items.
basic inventory items that are essential to production and also inexpensive should be ordered in small quantities only.
a small percentage of inventory items represents a large percentage of inventory cost.
one-third of a year's inventory needs should be on hand, another third should be on order, and the last third should be unordered.