Henderson Air Manufactures Heating and Air Conditioning Systems

Multiple Choice

Henderson Air manufactures heating and air conditioning systems. Recently, the management team decided to implement a new method of classifying inventory based on two key criteria: value (as measured by the contribution to profit) and risk (as measured by the negative impact of not having the product available when needed) . Which classification method is Henderson Air using?

A) ABC
B) Axis model
C) Square-root method
D) Quadrant model