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MDX with Microsoft SQL Server 2008 R2 Analysis Services: Cookbook by Tomislav Piasevoli

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Implementing the ABC analysis

ABC analysis is a method of identifying and classifying items, based on their impact, into 3 regions: A, B, and C. It's an extension of the "80-20" rule, also known as Pareto principle, which states that for many events, roughly 80% of the effects come from 20% of the causes. In one definition of the ABC analysis, the top 20% of the causes, the important part, are further divided in two subgroups: A (the top 5%) and B (the subsequent 15%), and the 80% of effects they contribute to into segments of 30% and 50%. These are the ratios we're going to use in this recipe. There are, of course, other definitions like 10/20/70. It really depends on user needs and you're free to change it and experiment.

ABC analysis is a very ...

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