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Pareto Chart for Inventory ABC Analysis — SKU Value Concentration

An inventory ABC Pareto chart ranks SKUs or product families by annual consumption value ($V_i = Demand_i \times UnitCost_i$) and plots cumulative percentage to define A, B, and C stock control tiers.

SUM / TOTAL1,439
MEAN (AVG)205.57
MEDIAN (P50)98
MIN14
MAX640
STD DEV (s)235.73
CHANGE % / CAGR-97.8% (-47.1%)
Inventory ABC ParetoAnnual Consumption Value ($K) · SKU / Product Family · n = 7Annual Value ($…00%179.225%358.450%537.675%716.8100%80% PARETO CUTOFF640SKU-104 (Li-…410SKU-219 (SiC…195SKU-088 (Sta…98SKU-312 (The…54SKU-405 (HV …28SKU-511 (Gas…14SKU-609 (Fas…44%73%87%93%97%99%100%SKU / PRODUCT FAMILYANNUAL CONSUMPTION VALUE ($K)
Hover or tap any bar, point, or slice on the chart to see exact numbers.
Chart Data (7)

Tip: Paste Excel or Google Sheets rows (Ctrl+V / ⌘V) directly into any cell.

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How Values Are Scaled

Annual Usage Value: AUV_i = AnnualUnits_i * UnitCost_i. Class A: CumValue <= 80%. Class B: 80% < CumValue <= 95%. Class C: CumValue > 95%.

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Chart Design & Use-Case Tips

  • 01Annual Usage Value: AUV_i = AnnualUnits_i * UnitCost_i. Class A: CumValue <= 80%. Class B: 80% < CumValue <= 95%. Class C: CumValue > 95%.
  • 02SKUs to the left of the 80% cumulative line are Class A items requiring tight safety stock, frequent cycle counts, and dual-source supplier agreements.
  • 03SKUs between 80% and 95% cumulative value are Class B items; SKUs above 95% are Class C bulk hardware.
  • 04Multiply annual unit volume by unit cost before pasting to rank by true financial exposure.

Frequently Asked Questions

What is ABC analysis in supply chain management?+

ABC analysis applies the Pareto principle to inventory: 'A' items (~20% of SKUs) account for ~80% of dollar spend, 'B' items (~30% of SKUs) for ~15%, and 'C' items (~50% of SKUs) for only ~5%.

How should warehouse teams manage Class C items differently from Class A?+

Class A items get daily/weekly cycle counting and automated reorder points, while low-cost Class C items (like bolts or packaging) use simple two-bin kanban bulk replenishment.

Does the Pareto chart sort my SKUs automatically?+

Yes, paste SKUs in any order and the chart automatically ranks them from highest dollar value to lowest.