In the ABC selective stock plan, when should items in Category C be ordered?

In the ABC selective stock plan, when should items in Category C be ordered?

• A. Weekly
• B. Monthly
• C. Once or twice a year
• D. Daily

Answer: (C)

In ABC analysis, items are ranked by how important they are to inventory costs and service levels. Category C consists of low-value, low-usage items, so the goal is to minimize ordering and handling costs while you maintain enough stock to avoid frequent stockouts. Because these items contribute little to overall value, you typically review and replenish them less often. Ordering once or twice a year is the most efficient approach, balancing the costs of ordering, receiving, and storing with the relatively small risk and impact of stockouts for these items. Daily, weekly, or monthly ordering would create unnecessary administrative work for items with minimal economic impact.

In ABC analysis, items are ranked by how important they are to inventory costs and service levels. Category C consists of low-value, low-usage items, so the goal is to minimize ordering and handling costs while you maintain enough stock to avoid frequent stockouts. Because these items contribute little to overall value, you typically review and replenish them less often. Ordering once or twice a year is the most efficient approach, balancing the costs of ordering, receiving, and storing with the relatively small risk and impact of stockouts for these items. Daily, weekly, or monthly ordering would create unnecessary administrative work for items with minimal economic impact.