ABC Analysis with K-Means Clustering

Keep in mind these numbers are rough and will vary significantly based on the actual distribution of sales. The key takeaway is that A items are a small percent of inventory, but contribute the most to revenue, C items are a large percent of inventory, but contribute the least to revenue, and B items fall somewhere in the middle. Both inventory planning and warehousing strategies rely on ABC analysis to make key logistic decisions. For example, a warehouse manager usually wants A items closest to the shipping docks to reduce the time required to pick them. This boosts productivity and reduces labor costs. <a href="https://towardsdatascience.com/abc-analysis-with-k-means-clustering-10d63ffff5b">Click Here</a>