As applied to inventories, it is usually found that the relationship between the percentage of items and the percentage of annual dollar usage follows a pattern in which three groups can be defined:
Group A About 50 % of the items account for about 5 % of the dollar usage Group B About 20 % of the items account for about 80 % of the dollar usage Group C About 30 % of the items account for about 15 % of the dollar usage

Giving people the authority to make decisions and take action in their work areas without getting prior approval is called:

The quantity on hand plus the quantity ordered must equal the sum of the demand during the lead time plus the demand during the review period plus safety stock.

Basic strategies that can be used in a production plan may be:

For a particular commodity, the line-haul cost is $2.50 per mile. For a trip of 500 miles and a shipment of 600 cwt., what is the cost of shipping cwt.? If this shipment is increased to 1000 cwt., what is the saving in cost per cwt.?