Classify inventory value to optimize warehouse slotting and picking priority.
| SKU | Value | % of Total | Cum. % | Class | Slotting Recommendation |
|---|
The warehouse ABC slotting and Pareto calculator empowers supply chain managers and inventory planners to optimize pick faces and reduce travel time. By categorizing SKUs into A, B, and C classes based on throughput value, you can strategically position fast-moving inventory for maximum fulfillment efficiency.
The 80/20 rule typically reveals that 20% of your SKUs generate 80% of the movement. These high-velocity items should be placed in the most accessible pick locations.
Analyzing by pick frequency optimizes labor and travel time. Analyzing by total dollar value helps prioritize working capital and cycle counting.
It is best practice to review slotting seasonally or at least semi-annually. Product lifecycles, promotions, and seasonal demand can drastically shift SKU velocity.
Class C items are typically the bottom 50% of your SKUs that only account for about 5% of total sales volume. They should be stored in higher racks or deeper aisles.