Examples
Examples
Try the starting example
- Annual usage by SKU
- 100,10,1
- Unit value by SKU ($)
- 10,20,50
- A cumulative value cutoff (%)
- 80
- B cumulative value cutoff (%)
- 95
- SKU indices in descending annual value
- 1, 2, 3
- ABC classes in ranked order
- A, B, C
- Annual values in ranked order ($)
- 1000, 200, 50
- Cumulative value shares (%)
- 80, 96, 100
- Total annual usage value ($)
- $1,250.00
Try another scenario
- Annual usage by SKU
- 2,3
- Unit value by SKU ($)
- 5,10
- A cumulative value cutoff (%)
- 60
- B cumulative value cutoff (%)
- 90
- SKU indices in descending annual value
- 2, 1
- ABC classes in ranked order
- A, B
- Annual values in ranked order ($)
- 30, 10
- Cumulative value shares (%)
- 75, 100
- Total annual usage value ($)
- $40.00
Calculation method
Calculation method
SKU indices in descending annual value
Rank each SKU by annual usage × unit value, descending; input order breaks ties.
ABC classes in ranked order
Use cumulative share before the item: A below A cutoff, B below B cutoff, otherwise C. Thus the threshold-crossing item remains in the earlier class.
Annual values in ranked order ($)
Annual usage × unit value, in ranked order.
Cumulative value shares (%)
Running value total / all-SKU value × 100.
Total annual usage value ($)
Sum all annual usage values.
Symbols and units
- a
- Annual usage by SKU
- b
- Unit value by SKU ($)
- c
- A cumulative value cutoff (%)
- d
- B cumulative value cutoff (%)
Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.
Assumptions & limits
Assumptions & limits
- A stated annual-value ABC convention, not a universal inventory policy. Items are indivisible across classes, so class shares can exceed their cutoffs. Thresholds are selected by you; demand variability, stockout impact and criticality are not inferred.
Are these inputs private?
These calculations run in your browser. A shared link contains the values you choose to share. Only questions submitted to the separate AI finder are sent to OpenAI.
Further reading
OpenStax: arithmetic and geometry ↗
Background reading; this does not imply endorsement or independent review of SumFizz.