Skip to content

CMA Intermediate · Operations Management and Strategic Management · Economics of Maintenance and Spares Management

In ABC analysis of a spares inventory, which approach is most appropriate for the A-category items?

A-category spares need tight control with frequent review and accurate records. They form a small number of items but a large share of inventory value, so careful monitoring gives the greatest savings, while low-value C items can be controlled more loosely.

  1. ATight control with frequent review and accurate recordsCorrect
  2. BBulk ordering with minimal records
  3. CControl only through periodic physical counts once a year
  4. DLeave ordering to the stores clerk without approval

Explanation

A items are a small share of the number of items but a large share of the value, so they warrant tight control, close review and accurate records. Loose control is meant for C items. The other options describe relaxed control that does not suit high-value items.

Did you get it right without looking?

One question tells you little. A timed set on Economics of Maintenance and Spares Management shows your real accuracy, how long you take and where you lose marks.

Practise Economics of Maintenance and Spares ManagementFree diagnostic mock

More Economics of Maintenance and Spares Management questions