The 80/20 Analytics for Retail
One must offer a variety of goods within the category they are selling. Maintaining a large inventory of products is always a challenge. This however, does not mean that they need to stock up large volumes of every product they
offer.
AArete proposed the 80/20 rule based on the fact that for most businesses, 80 percent of the volume sold/sales generated comes from around 20 percent of the total products. So, one needs to have a large inventory only for that top-selling 20 percent. For the remaining 80 percent, a very small inventory can be maintained.