Definicja pareto analysis

A method of classifying items, events, or activities according to their relative importance. It is frequently used in inventory management to classify stock items into groups based on the total annual expenditure for, or total stockholding cost of, each item.

Organizations can concentrate more detailed attention on the high value/important item.

The alternative term ABC analysis stems from the fact that the first 20% of important items are known as Category A items, the next, typically 40% are Category B items and the relatively unimportant, though larger in number 40% are Category C items.