Development of an integrated tool for inventory management based on the Pareto Principle and ABC Classification

an action research in a mirror industry

Abstract

Inventory management in industrial environments with high raw material diversity requires tools that integrate monitoring, control, and decision-making support. Although ABC Classification and the Pareto Principle are widely used to prioritize items, their isolated application does not fully meet the needs of integrated inventory management. In this context, this study aimed to develop and evaluate an integrated management tool based on the Pareto Principle and ABC Classification, implemented in Microsoft Excel, capable of supporting inventory monitoring, consumption tracking, purchasing projections, and production visualization in a mirror production line. The research adopted the Action Research method, involving problem diagnosis, development, implementation, and iterative evaluation of the tool in a real industrial environment. As a result, an integrated dashboard was developed to consolidate strategic indicators for inventory monitoring, comparison between predicted and actual consumption, definition of optimal purchase dates, inventory level projections, and production tracking. The application of the tool improved purchasing planning, reduced the need for emergency freight, avoided excess inventory, and increased information visibility to support decision-making. As a scientific contribution, the study demonstrates a way to integrate ABC Classification and the Pareto Principle into a low-cost and easily replicable management tool. As a practical contribution, it provides an accessible model to support integrated inventory management in industrial environments.