What is characteristic of the 'core' items in a Pareto analysis?

Prepare for the CPCA Category Management Exam. Study with flashcards and multiple choice questions, each question features hints and explanations. Get ready for your certification!

The characteristic of 'core' items in a Pareto analysis is that they typically account for 80% of volume sourced from 20% of SKUs. This principle reflects the Pareto Principle, often referred to as the 80/20 rule, which suggests that a small percentage of items (the core) often drive the majority of sales or volume for a retailer or category. Core items are crucial for inventory management and sales strategy, as they represent the most significant portion of revenue and demand. Understanding which items fall into this category helps businesses prioritize their resources, optimize stock levels, and ensure that they focus on maintaining sufficient supply of these high-performing products.

The other options either describe items that do not fall into the core category or misrepresent the relationship between items and sales volume within a Pareto framework.

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