ABC analysis applies the Pareto principle (the 80/20 rule) to inventory: typically a small share of items (Class A) accounts for the large majority of usage value, while a large share of items (Class C) contributes very little. Accountdesq's Inventory ABC Analysis tool ranks every item by annual usage value (quantity used or sold multiplied by unit cost), classifies each into A, B, or C based on its cumulative contribution to total value, and generates the classic Pareto chart plus a class breakdown pie chart - along with specific inventory control and restocking recommendations for each class.
Read the full guideEnter each inventory item's name, annual quantity used or sold, and unit cost - or load sample data to see it in action. The tool calculates each item's usage value, ranks them from highest to lowest, and classifies items into Class A (the first ~80% of cumulative value), Class B (the next ~15%), and Class C (the remaining ~5%). A Pareto chart shows usage value bars alongside the cumulative percentage line, and a pie chart shows the value split by class. Export the full ranking, class summary, and recommendations as PDF or Excel.
Columns: Item Name, Annual Qty, Unit Cost
| Item Name | Annual Qty Used/Sold | Unit Cost ($) | |
|---|---|---|---|
Add inventory items with annual quantity and unit cost above (or load sample data) to see your ABC classification.
Treating every SKU with the same level of attention wastes effort on low-value items while sometimes under-managing the few items that actually matter most. ABC analysis focuses tight inventory control - frequent review, accurate forecasting, careful reorder timing - on the small set of high-value items, while allowing loose, low-effort control (bulk ordering, infrequent review) for the large number of low-value items.
ABC analysis classifies inventory items by their contribution to total usage value (quantity used or sold × unit cost), based on the Pareto principle. Class A items are the vital few (typically ~20% of items driving ~80% of value); Class C items are the trivial many (the bulk of SKUs contributing very little value).
Disclaimer: Accountdesq provides this Inventory ABC Analysis for informational and convenience purposes only. Output is not a substitute for professional accounting, legal, or tax advice. No data entered is transmitted to or stored on our servers - all calculations happen locally in your browser. Accountdesq accepts no liability for errors in generated documents. Always consult a qualified accountant or tax professional for compliance matters.
