Certified Logistics Technician (CLT) Practice Exam

What is the general nature of items classified as C in ABC inventory control?

1. They are typically new products

2. They represent the highest selling items

3. They represent the lowest value goods

4. They are seasonal products

The correct answer is: They represent the lowest value goods

Items classified as C in ABC inventory control are characterized as representing the lowest value goods. This classification stems from the principles of the ABC method, which categorizes inventory based on their importance in terms of total dollar value. In this framework, items are sorted into three categories: A, B, and C. A items are high-value products that contribute most significantly to overall revenue, while B items have moderate value and significance. C items, on the other hand, represent goods that are lower in value and therefore have a lesser impact on the company's overall financial performance. Understanding this classification helps businesses prioritize their inventory management efforts. By focusing on A and B items, companies can optimize their operations, reduce excess stock, and tailor their purchasing strategies accordingly. Recognizing that C items, although low in value, still represent a part of the inventory, allows for effective management without neglecting even the least valuable items, ensuring that overall inventory levels remain manageable and cost-effective.