All of the following statements are true regarding Item C in ABC analysis, EXCEPT

Appeared in: MNS 2024

Explanation

This statement is false and therefore the correct answer to the 'EXCEPT' question.
Class C items are low-value items that make up the bulk of inventory quantity but represent a small fraction of the total inventory cost.
Due to their low financial impact, they are managed using simple, inexpensive, and relaxed control systems.
Tight control is a characteristic of Class A items, which are high-value and have a significant financial impact, requiring close monitoring by senior management.

Option B: This is a true statement regarding Class C items. They are numerous and typically constitute a large portion (50-70%) of the total number of inventory items.
Option C: This is a true statement. Because Class C items are of low value and require minimal control, their management is often delegated to junior staff or lower-level managers.
Option D: This is a true statement. Class C items collectively account for a very small percentage (typically 5-10%) of the total annual consumption value or inventory cost.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain ABC Analysis in Inventory Management as background academic context rather than a clinical decision trigger.
In a hospital setting, ABC analysis is crucial for managing pharmacy and ward supplies efficiently.
Class A items would be expensive, life-saving drugs or specialized surgical implants. These require strict tracking, secure storage, and senior oversight to prevent stockouts or expiry.
Class C items would be high-volume, low-cost supplies like gauze, cotton balls, or standard saline drips. A simpler, bulk-ordering system is used for these to save time and administrative effort.

How to Approach the Question

First, identify the negative framing of the question with the keyword 'EXCEPT'. This means you are looking for the one statement that is FALSE.
The question is about 'Item C' in 'ABC analysis'. Recall the core principles of this inventory method.
Remember the basic rule: Class A = high value, low quantity, tight control. Class C = low value, high quantity, loose control.
Evaluate each option against the characteristics of Class C items.
Option A states 'tight control'. This contradicts the principle of loose control for Class C items.
Check the other options to confirm they are true characteristics of Class C (high percentage of items, low percentage of cost, managed by low-level staff). Since they are true, the false statement is the correct answer.

Concept Tested & Keywords

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E6 Nursing_Management_and_leadership_Johny_Kutty_JosephCbs_Publishers (pp 16-364 of 374) pp. 126-128, 127-129

Practise the full MNS 2024

Attempt every question from this paper in a timed mock, then review the full solution for each one.