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Paul, a Warehouse Manager, is using an ABC method to classify inventory. Which class would contain the most valuable products?
Suggested Answer: A
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Comprehensive and Detailed Explanation From Exact Extract:
ABC (Pareto) classification typically groups a small proportion of high-value items as ''A'' (often 10--20% of items accounting for a large share of value), with ''B'' and ''C'' representing progressively lower value importance. (Reference: CIPS L5M10 Study Guide, ABC inventory categorisation, p. 9)
15 comments · newest first
FR
Francoise
2 months ago
I still feel D could be a trick option.
NI
Nichelle
2 months ago
Yeah, A makes sense for valuable inventory.
MA
Mayra
2 months ago
True, but A is still the common choice.
FR
Francoise
2 months ago
But what about D? It says ABC doesn't categorize by cost.
NI
Nichelle
3 months ago
Agreed, A is for high-value products.
MA
Mayra
3 months ago
I think it's A. Most valuable items go there.
SH
Shonda
3 months ago
I don't know, seems too simple to just categorize by value.
AL
Aliza
3 months ago
Definitely A, that's standard ABC classification.
BE
Beckie
3 months ago
Wait, are we sure about that? I thought it was just about quantity.
LO
Loreen
4 months ago
Totally agree, A is where the high-value items are.
BO
Bong
4 months ago
Class A has the most valuable products!
DA
Dawne
4 months ago
From what I recall, class A definitely has the most valuable items. It’s like the 80/20 rule, right?
TE
Tegan
4 months ago
I’m a bit confused though. Does ABC really categorize by cost, or is it just about quantity?
NO
Nohemi
4 months ago
Yeah, I agree with Marsha. I practiced a similar question where A was the highest value category.
MA
Marsha
4 months ago
I think class A contains the most valuable products, but I’m not entirely sure. I remember something about A being the top tier.