Guides
Mitigate the negative effects of slow-moving inventory
By Spacesaver Industrial
March 13, 2012
March 13, 2012
How to apply the 80/20 rule in conjunction with high-density storage to optimize productivity and efficiencies in small- to mid-sized facilities.
To explain his country’s distribution of wealth, Italian engineer-turned-economist Vilfredo Pareto coined the 80-20 rule to illustrate how a few (20%) account for the many (80%). Companies commonly use it to delineate those 20% of bestselling SKUs that account for 80% of their businesses’ revenues.
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