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ABC Classifier

Master the Pareto principle for inventory management. Classify items by annual value to decide where to focus your attention and resources.

SCM101 SCM202

How to Play

  • Each round presents 10 inventory items with annual usage and unit cost
  • Calculate the annual value (usage x cost) for each item
  • Classify items: A = top ~80% of cumulative value, B = next ~15%, C = bottom ~5%
  • Submit your classifications and see the Pareto chart with correct answers
  • Play 8 rounds across different industry contexts
  • Earn up to 10 points per round (1 point per correct classification)

Round 1: Retail Store Inventory

Classify items for a general retail store.

Score
0
# Item Annual Usage Unit Cost Annual Value Your Class

Game Complete

The Pareto Principle in Action

Across all 8 rounds, you observed the 80/20 rule: roughly 20% of inventory items consistently account for about 80% of total value. This principle is the foundation of ABC analysis and guides how supply chain managers allocate their time, negotiate with suppliers, and set reorder policies.