Inventory Management Made Simple: EOQ, ROP, EPQ, Cycle Counting, ABC Analysis & More | Chapter 12 - ABC Analysis Explained — Inventory Classification in Microsoft Excel

Continue your inventory and operations management learning with this practical walkthrough of ABC Analysis using Microsoft Excel. In this video, Operations University instructor Brent Bolton demonstrates how to quickly classify inventory items based on annual dollar value using Excel formulas. You’ll learn how to calculate annual dollar usage, sort inventory by value, determine cumulative percentages, and assign A, B, and C classifications. This approach scales easily from a small SKU list to thousands of items, making it a powerful tool for inventory control and prioritization. 👉 Get Certified (Lean Six Sigma) Watch the full Lean Six Sigma playlist, then complete your certification at OperationsUniversity.org to earn your Lean Six Sigma certificate. 💰 Advance Your Credentials Certification & Pricing = Yellow Belt $99 • Green Belt $499 • Black Belt $899 — or all 3 for $1,199 (save when purchasing together). Employer packages: Bulk enrollments & reporting available. 💡 What You’ll Learn in This Video: • What ABC analysis is and why it matters • How to calculate annual dollar value in Excel • How to sort inventory by descending value • How to compute cumulative dollar percentages • How to assign A, B, and C inventory codes • How ABC analysis scales to thousands of SKUs 📢 Call to Action ✅ Subscribe for more Lean Six Sigma & operations content ✅ Visit OperationsUniversity.org to get certified ✅ Share this video with your inventory or supply chain team #LeanSixSigma #InventoryManagement #ABCAnalysis #ExcelForOperations #SupplyChain #OperationsManagement #ContinuousImprovement