What does Category B account for in the ABC plan in a stock account?

What does Category B account for in the ABC plan in a stock account?

• A. The B category accounts for approximately 15% of the dollar value of the warehouse demand and about 15% of the stock records
• B. The B category accounts for approximately 75% of the dollar value of the warehouse demand
• C. The B category accounts for approximately 50% of the dollar value
• D. The B category accounts for approximately 5% of the dollar value

Answer: (A)

In ABC analysis, items are split into three groups by how valuable they are to the stock value and how many items exist in the catalog. The middle group, Category B, represents items that aren’t the highest value or the most numerous, but still matter enough to warrant closer attention than the low-value, high-volume group and more flexibility than the top-value group. Seeing Category B account for about 15% of the dollar value of warehouse demand and roughly 15% of the stock records fits this middle-ground idea. It signals that these items have a moderate impact on total value and moderate representation in the inventory, so they should be monitored and controlled with more care than the bulk low-value items but without the stringent controls reserved for the highest-value items. Different organizations may have slightly different cutoffs, but the essence is that Category B sits between A and C in both value and item count, serving as the middle tier in inventory management.

In ABC analysis, items are split into three groups by how valuable they are to the stock value and how many items exist in the catalog. The middle group, Category B, represents items that aren’t the highest value or the most numerous, but still matter enough to warrant closer attention than the low-value, high-volume group and more flexibility than the top-value group.

Seeing Category B account for about 15% of the dollar value of warehouse demand and roughly 15% of the stock records fits this middle-ground idea. It signals that these items have a moderate impact on total value and moderate representation in the inventory, so they should be monitored and controlled with more care than the bulk low-value items but without the stringent controls reserved for the highest-value items.

Different organizations may have slightly different cutoffs, but the essence is that Category B sits between A and C in both value and item count, serving as the middle tier in inventory management.