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6

ABC Analysis

Pareto classification of inventory by revenue contribution

Class A Items

4

80% revenue

Class B Items

4

15% revenue

Class C Items

10

5% revenue

Pareto Chart — Revenue by Product

Class A
Class B
Class C
Cumulative %
ProductSKUCategoryClassAnnual RevenueRevenue %Cumulative %Units Sold
Hydraulic Cylinder 50mmHYD-CYL-050HydraulicsA$189,00022.4%22.4%1,000
Copper Wire Spool 14AWGCOP-WR-014ElectricalA$138,00016.4%38.8%4,000
Aluminum Sheet 4x8ALU-SHT-4x8Raw MaterialsA$124,00014.7%53.5%2,000
Industrial Ball BearingIND-BB-001BearingsA$103,92012.3%65.8%8,000
Rubber Gasket KitRUB-GSK-KITSeals & GasketsB$74,9708.9%74.7%3,000
Welding Rod E6011WLD-ROD-611WeldingB$45,0005.3%80.0%12,000
PVC Pipe 2in x 10ftPVC-PPE-210PlumbingB$36,2504.3%84.3%5,000
Safety Goggles ProSAF-GOG-PROSafetyB$26,9703.2%87.5%3,000
Cable Tie Bundle 100pkCBL-TIE-100FastenersC$21,9602.6%90.1%4,000
Stainless Steel Bolt M10SS-BLT-010FastenersC$17,8002.1%92.2%20,000
Sandpaper Multi-Grit PackSND-PPR-MGAbrasivesC$14,4001.7%93.9%2,400
Lubricant Spray WD-40LUB-SPR-WDChemicalsC$12,6001.5%95.4%1,800
Masking Tape 2inMSK-TPE-2INAdhesivesC$9,8001.2%96.6%3,500
Wire Connector AssortmentWR-CON-ASTElectricalC$8,4001.0%97.6%1,200
Hex Key Set MetricHEX-KEY-METHand ToolsC$6,7200.8%98.4%480
Teflon Tape RollTEF-TPE-ROLPlumbingC$5,4000.6%99.0%6,000
Wood Screw AssortmentWD-SCR-ASTFastenersC$4,2000.5%99.5%1,400
Electrical Tape BlackELC-TPE-BLKElectricalC$4,2000.5%100.0%2,100