1. The value of an item. Inexpensive items will tend to have higher tolerances than the expensive ones.
2. The frequency and volume of usage. Items used more frequently will be more subject to error.
3. The lead-time. Shorter lead times can mean higher tolerances.
4. The criticality of an item. More critical items require lower tolerances or possibly zero tolerance. For example, items at
higher levels in the bill are more likely to be shipment stoppers; therefore, they may have lower tolerances.