CPIM Practice Exam

In terms of cumulative value categories, what percentage typically represents the A items?

1. Around 20%

2. Around 50% to 70%

3. Around 10%

4. Around 80%

The correct answer is: Around 50% to 70%

The correct answer reflects the common practice in inventory management and the application of the ABC analysis method, where items are categorized based on their cumulative value contribution. Typically, 'A' items represent a small percentage of the total items, often around 10% to 20%, yet they account for a significant portion of the total value, typically about 70% to 80%. In this context, 'B' items usually follow, representing a mid-range percentage of both total items and total value. Thus, the percentage that typically represents the 'A' items aligns with the principle that they comprise a considerable portion of the total value while being a limited percentage of the inventory items. This is essential for companies to prioritize their management and control efforts on the most critical inventory to optimize resources effectively.