ABC Analysis in Inventory: Example and Steps
By mise · Updated September 29, 2026
Quick answer: ABC analysis ranks items by the value they move. A items are about 20% of SKUs and 80% of value; B, 30% and 15%; C, 50% and 5%. Count A weekly, B monthly, C quarterly.
Not every item deserves the same attention. ABC tells you where to spend it.
Step by step
- Annual usage value per item (units × cost).
- Sort high to low.
- Cumulative percentage.
- Up to 80% = A; 80–95% = B; the rest = C.
| Class | Items | Value | Control |
|---|---|---|---|
| A | ≈20% | ≈80% | Weekly count, tight par |
| B | ≈30% | ≈15% | Monthly |
| C | ≈50% | ≈5% | Quarterly |
In a restaurant, A items are usually proteins, seafood, olive oil and spirits; C items are spices, napkins and condiments.
mise ranks your items by value from your counts and purchases.
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Frequently asked questions
What is ABC analysis?
A way to rank inventory by economic importance, based on the Pareto 80/20 rule.
How often should I update it?
Quarterly, or when the menu or assortment changes.
Can I do it in Excel?
Yes: annual value, sort, cumulative %.
How much does mise cost?
A 7-day free trial, then US$33 a month per location (£26 in the UK).