The ABC Approach to Inventory Management Is Based on the Concept

question 57

Multiple Choice

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

• A)inventory should arrive just in time to be used.
• B)the inventory period should be constant for all inventory items.
• C)basic inventory items that are essential to production and also inexpensive should be ordered in small quantities only.
• D)a small percentage of the inventory items probably represents a large percentage of the inventory cost.
• E)one-third of a year's inventory need should be on hand, another third should be on order, and the last third should not be ordered yet.

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Definitions:

Vicarious Learning

The method of acquiring knowledge by watching the behaviors of others and the results of those behaviors, instead of by personal experience.

Comprehender

An individual who understands or grasps information, ideas, or situations.

Focal Object

The central point of attention or interest in a particular context, often used in studies of perception and attention.

Triadic Reciprocal Model

A theory in psychology that explains human behavior and personality development through the interaction of personal factors, behavior, and environmental factors.