Warehouse glossary

ABC analysis

ABC analysis ranks inventory products in three classes by importance, usually by annual usage value: A, the few products that account for most of the value; B, the intermediate ones; C, the majority, with low value.

Also known as
ABC classification · Pareto analysis

Reviewed October 29, 2026 by the Business in a Wave team

Its use in the warehouse

In the warehouse, ABC analysis sets the frequency of cycle counts and the attention each product receives: a common reference is to count class A every 30 days, class B every 90 and class C every 180. The 80%, 15% and 5% value cutoffs are a convention; products with a high risk of discrepancy should move up a class even if their value is low.

How Chainlink WMS applies it

In Chainlink WMS, a count is created for a zone, some aisles, some levels or a list of locations, so your team can count the locations of A products every month and those of C products every six months. On closing, each count separates matches, wrong locations, overages and shortages.

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