Business Production Control 1

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ABC classification is a system used to categorize items in accordance to their importance in achieving a businesses’ goal. The system categorizes items into three classes:

  1. A ITEMS: Outstandingly important
  2. B ITEMS: Moderately important
  3. C ITEMS: Relatively unimportant

             Each class here requires different organization and control. A items are those items when used in small numbers produce very high returns. Therefore, they are the most valuable and closely monitored followed by B’s while the C’s receive the less control and attention. Manufacturers’ use this system in inventory control. They ensure that inventory items that produce the highest sale volume when used in low amounts are closely monitored…

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