Focus your control where the value is
| Item | Annual value ₹ | % of total | Cumulative | Class |
|---|---|---|---|---|
| 48.1% | 48% | A | ||
| 24.0% | 72% | A | ||
| 16.0% | 88% | B | ||
| 7.0% | 95% | C | ||
| 3.0% | 98% | C | ||
| 1.2% | 99% | C | ||
| 0.6% | 100% | C |
Class A items (usually ~20% of SKUs, ~80% of value) deserve tight stock control and your best terms. Class C can run on simple reorder rules or be pruned. Total value: ₹99.80 L.
Not all SKUs deserve equal attention
A small set of items usually drives most of your inventory value. Class A gets tight forecasting, safety stock and your best supplier terms; Class C runs on autopilot or gets pruned.
Managing every SKU the same way wastes working capital on the trivial many while under-protecting the vital few.