In ABC analysis, "C items" typically have what level of control?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the UCF supply chain midterm. Utilize flashcards, multiple choice questions, and detailed explanations. Ace your test with these comprehensive study tools!

In ABC analysis, "C items" are classified as those items that represent the smallest portion of the overall inventory value but account for a larger portion of the total items. Because these items contribute less to the overall worth of the inventory, the management approach for them can be more lenient.

The correct response indicates that "C items" involve the simplest controls possible and minimal records. This is appropriate as businesses typically do not invest extensive resources into managing low-value items. Instead, they might implement less rigorous monitoring procedures, allowing for cost efficiency in inventory management. By doing so, organizations can allocate their resources more effectively towards "A items," which are high-value and high-priority, and "B items," which are of moderate priority.

In contrast, tighter controls and meticulous records might be justified for "A items," while "B items" would have a middle-ground level of control. Thus, the classification of "C items" necessitates minimal control and record-keeping due to their minimal impact on overall inventory costs and management priorities.