Question
Enumerate the suggested policy guidelines for A, B and C classes of items.

Answer

The table given below explains the policy guidelines for A, B and C classes of items:
S.No.
(A) Items (High Consumption Value)
(B) Items (Moderate Consumption Value)
(C) Items (Low
Consumption Value)
1.
Very strict consumption control
Moderate control
Moderate control
2.
No or very low safety stock
Low safety stock
High safety stock
3.
Phased delivery (Weekly)
Once in three months
Once in 6 months
4.
Weekly control report
Monthly control report
Quarterly report
5.
Maximum follow up
Periodic follow up
Exceptional
6.
As many sources as possible
Too reliable
Too reliable
7.
Accurate forecasts
Estimates on past data
Rough estimate
8.
Central purchasing/storage
Combination purchasing
Decentralised
9.
Max. efforts to control
Min. clerical efforts
LT Moderate
10.
To be handled by Sr. officers
Middle level can be delegated
Middle level can be delegated
ABC (Always Better Control) analysis can help you control your inventory better.

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