Question 11
Using the ABC classification for inventory, Category A items are high-value and tightly controlled with JIT ordering. In the Blank Cost data, Blank-011 costs INR 105, Blank-012 costs INR 35, and Blank-022 costs INR 25. If Blank-011 is used in multiple gear assemblies (GA3 and GA4), making it high-value and high-consumption, which inventory strategy should ACE Gears apply to Blank-011?
Economic Order Quantity (EOQ) with simple record-keeping
Just-In-Time with planned orders and accurate record maintenance
Planned Orders with safety stock and moderate controls
Bulk purchasing annually to get volume discounts