ABC Analysis Tool
ABC Inventory Classification
Enter SKU names and annual revenue values. Items are ranked and classified into A (top 70%), B (next 20%), C (bottom 10%) automatically.
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ABC Classification Results
| Rank | SKU | Annual Rs | % Total | Cumulative | Class |
|---|
What Is ABC Analysis?
ABC analysis classifies inventory by value contribution. Class A items (typically 10-20% of SKUs) generate 70-80% of revenue and need tight controls. Class B items are the middle tier. Class C items are numerous but low-value, manageable with simpler systems.
Should I use revenue or quantity for ABC? ▼
Use annual revenue value (unit cost multiplied by annual quantity sold or consumed). This reflects the financial impact of each SKU. For operational criticality you may run a separate analysis using usage frequency.
How often should I redo ABC classification? ▼
Annually at minimum. Many Pakistan SMEs skip this and end up over-managing C items while under-managing A items, a very costly mismatch of management attention.