The 80/20 rule, also known as the Pareto Principle, is a widely used guideline in the business world and a valuable inventory management tool. It states that roughly 80% of a company's sales will come from 20% of its products. This principle can be used to help prioritize inventory and focus on the items that are most important to the business.
When using inventory management systems, it becomes a lot easier to keep track of your stock and sales data becomes a lot easier. This then allows you to generate reports that can help you identify which products are selling well and which ones may need to be discontinued.