Certified Maintenance & Reliability Professional (CMRP) Practice Exam

What does the ‘C’ classification represent in ABC inventory classification?

1. One of a kind, high-cost parts

2. Standard, easily sourced items

3. Items with long lead times

4. High-demand, low-value items

The correct answer is: Standard, easily sourced items

The ‘C’ classification in ABC inventory classification represents items that are low in cost and generally have a lower impact on overall inventory value. These items are often standard, easily sourced products that are more readily available in the marketplace. Focusing on these items allows organizations to manage their inventory more effectively by balancing their overall inventory costs with the need to keep various types of products on hand. By classifying these items as 'C', companies can prioritize their management efforts on those items that have higher value or demand, such as 'A' and 'B' classifications, thus optimizing resources and minimizing holding costs associated with lower-cost items. This approach enables operations to concentrate on higher-value items while allowing for a more streamlined process for managing the more abundant, low-cost items that do not significantly impact financial performance even if they run low or are out of stock temporarily.