QUESTION 27 3 ps The ABC Inventory Analysis method involves the following analyt

Question

QUESTION 27 3 ps The ABC Inventory Analysis method involves the following analytical activities A. Determining the annual dollar volume by SKU. B.Use of the Pareto Principle. ° C. Application of Steven Covey's third habit D.All of the above O E. A & B only QUESTION 28 3 po After reviewing an ABC analysis, some products are considered to be D products. A company may want to do the following with a D product O A. There are no such D category O B. Dedicate resources to this product and count often as it's in Demand OC. Donate, Destroy or Discontinue as it's Dead D. Determine which employee should be stuck with this product in the White Elephant Christmas Exchange E. Premote as this lem is in Demand

Explanation / Answer

Question 27

Answer- E. A&B only

(A. Determining the annual dollar volume by SKU and B. Use the Pareto principle)

Explanation - ABC analysis is an effective tool for inventory categorization for the management of inventory. SKU is the Stock Keeping Unit. Determining the dollar volume by SKU helps to categorize the inventory into 3 types. Also, the principle of PARETO analysis is applied which states that 80% of the total volume consumed is based on 20% of the total items in stock.

Question 28

Answer -A. There is no such D category

Explanation - ABC classification categorizes the inventory as below based on the Pareto Principle.

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