ABSTRACT
In this chapter, we devote our attention to the relatively small number of important items typically classified in the A group. For such items, additional effort may be warranted in both selecting control parameters and managing inventory. While not all important items are necessarily highvolume items, we restrict our attention in this chapter to items that are moderate to high volume. Chapter 8 addresses the management of slow-moving items of all levels of importance. Section 7.1 presents a brief review of the nature of A items. This is followed, in Section 7.2, by some general guidelines for the control of such items. Section 7.3 deals with faster-moving items and a more elaborate set of decision rules, which, in an (s,Q) system, take account of the service (shortage)- related effects in selecting the value of the order quantity Q .* Next, in Sections 7.4 and 7.5, we present control logic for two somewhat more complicated systems whose use may be justified for A items. In Section 7.6, we address the issue of demand that is not stationary over time. Finally, in Section 7.7, we briefly discuss the research that analyzes the case of multiple suppliers.
