ABC analysis

The ABC analysis is an analysis of an assortment depending on the distribution of the article after a specified criterion. There are different criteria, e. g., sales quantity, conversion or categorization of the stock. Purpose of the analysis is it to create an actual situation over objects and/or processes, in order to increase the profitability. For this purpose, the individual items are divided into category A (highest share), B (average share) and C (lowest share). Based on the Pareto principle (80:20 rule), the components that have the greatest impact can be identified. Therefore resources or measures can be adjusted according to the prioritization.

Example: 20% of the A-items are responsible for 80% of the total sales.