In the ABC system of inventory management, the ________ method or system could be utilized to control C items.
A) basic economic order quantity
B) materials requirement planning
C) red-line
D) just-in-time

Question

Quizplus · Accepted Answer

The red-line method is used to control C items, which are the low-value items with low consumption frequency. In this method, a red line is drawn on the inventory card to indicate the reorder point. When the inventory level reaches the red line, it triggers the need to reorder the item. The basic economic order quantity method is used for controlling A items, while materials requirement planning and just-in-time are used for controlling B and few A items.

In the ABC System of Inventory Management, the ________ Method