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What is C-Type Inventory in ABC Analysis of Control?
C-Type Inventory:
Majority of the items (as 60 to 70 percent) constitute merely a minor fraction of the total yearly monetary consumption (as 5 to 15 percent) into inventories. Such items are C-Type items. The control required for such items may not be extremely stringent. Bulk-purchase choices may be helpful as the item cost is less. Thus, lesser number of orders may be placed. Such items may be in the supervision of lower level of management and merely monthly reports or exceptional reports are required by top management.
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Buffer inventories are held to protect against the uncertainties of demand and supply. An organizationgenerally knows the average demand for various items that it needs. How
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