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Debra Ellis
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The old rules have changed. Economist Vilfredo Pareto’s 80/20 law worked because 80 percent (+/-) of the movement was generated by 20 percent of the products. If you focused on managing the top items, you’d keep your inventory balanced.
But the Internet has changed movement dynamics. The 80/20 ratio is evolving. Top-selling items are selling less while low movement ones are selling more. This means more resources must be allocated to manage the same number of SKUs.
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