What distinguishes Class C items in the context of inventory management?

Class C items in inventory management are characterized by their low value and relatively low impact on overall inventory costs. They need not be closely controlled, which means that businesses can manage these items using more streamlined and less resource-intensive approaches, such as automated systems. This is because the cost of managing them closely would outweigh the benefits, given that these items represent a smaller portion of the overall inventory expenditure.

For instance, in the ABC analysis, which categorizes inventory into three categories based on value and importance, Class C items represent the largest number of items but contribute the least financial value. Because of their minimal impact, businesses can implement simpler control measures to reduce administrative costs and improve efficiency. This allows resources and management focus to shift toward Class A and Class B items, which have a more significant financial impact and require tighter inventory controls.