Classify items by annual usage value. Use the result to decide which items deserve the closest attention.
Classify items for a general retail store.
| # | Item | Annual Usage | Unit Cost | Annual Value | Your Class |
|---|
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.