An anonymous US manufacturer streamlined their inventory management operation by implementing a modified ABC approach. The company classified 6% of its SKUs as A items, 10% as B items and 84% as C items and established a bi-level policy. Orders for C1 items were only placed with a supplier when an order was received from a customer. However the company maintained sufficient stocks of C2 items to have one item on hand or on order at all times. The policy enabled the company to reduce order review...

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