The inventory items in the A group account for a major portion of the inventory costs of the organization. As s result, their inventory levels must be monitored carefully. These items typically make up more than 70% of the company's business in dollars, but may consist to the company. Thus, great care should be taken in forecasting the demand and developing good inventory management policies for this group of item (refer to Table 6.8), Since there are relatively few of these, the time involved would not be excessive.