The 80/20 rule states that 80% of results come from 20% of efforts, customers or another unit of measurement. When applied to inventory, the rule suggests that companies earn roughly 80% of their profits from 20% of their products. Identify those top performers and emphasize them over slower sellers, and you’ll increase sales. If you further sort to favor higher-margin products within that 20%, you optimize your inventory for both volume and profitability.