The value of the Pareto Principle in management is reminding us to stay focused on the -------- that matters

20% 80% 75% 60%

20%

The inventory control technique known as ABC analysis builds on Pareto's Principle. In ABC analysis, a company reviews its inventory and sorts all SKUs into three categories, called "A" , "B" and "C" items. The typical breakdown might look like this: "A" inventory: 20 percent of SKUs, 80 percent of value. "B" inventory: 30 percent of SKUs, 15 percent of value. "C" inventory: The value of the Pareto Principle in management is in reminding us to stay focused on the 20 percent that matters.