ITPEC IP October 2018 Question 70
ITPEC IP October 2018 — Question 70 of 100
ABC analysis is commonly performed with a Pareto chart. Items are ranked by value, consumption, sales, or another importance measure, and their cumulative contribution is used to divide them into high-priority A, medium-priority B, and low-priority C classes.
Answer (d)
Why not others:
- a control chart monitors process variation over time
- a scatter diagram shows the relationship between two variables
- a cause-and-effect diagram organizes possible causes of a problem
Key rule: Pareto ranking highlights the vital few items that account for a large share of total impact, which is the basis of ABC classification.
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