How to Calculate ABC Analysis
What is ABC Analysis?
ABC Analysis Calculator helps logistics and supply chain professionals optimize operations and reduce costs.
Formula
A items: top 20% by value = 80% of revenue; B: 30%=15%; C: 50%=5%
Step-by-Step Guide
- 1Sort SKUs by revenue contribution, assign A/B/C tiers
- 2Apply the formula with your specific values
- 3Use the result to optimize operations or costs
Worked Examples
Input
100 SKUs sorted by annual revenue
Result
Top 20 SKUs = 80% of revenue (A items)
Common Mistakes to Avoid
- ✕Using incorrect units or dimensions in the calculation
- ✕Ignoring surcharges and accessorial fees
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