Work out abc inventory classification instantly with clear inputs, formula shown and shareable results.
ABC classification applies Pareto logic to inventory: rank items by annual usage value, then cut the ranked list at roughly 80% and 95% of cumulative value. Class A items justify tight forecasting and cycle counting; class C items should be managed with minimum effort.
Annual usage value
Usage value = Annual usage units x Unit cost
Classification
Cumulative value <= 80% = A; <= 95% = B; above = C
Because control effort should follow the money. A cheap high-volume fastener rarely deserves the attention a low-volume critical assembly does.
No, they are conventions. Some operations use 70/90 or add a D class for obsolete stock; keep the boundaries stable so trends stay comparable.