# Pareto – 80/20 Rule

Dear all,

What is the best practice for calculation Pareto (80/20 Rule) with matrix in appendix.

Note that several amounts are the same.

Thanks for your help.

BRs

Denis

Hi all!

Denis, look at my version of the model on your data. Since your sales data are not normalized, I have cut off negative, zero and very small sales values by means of the parameter: **the lower sales bound** (**LSB**). Try these **LSB**‘s values: 1000, 5000, 10000, 15000, – and look at the changes in the chart and statistics. The main question of the model is: how many customers with positive sales give a total of 80% of revenue.

The Pareto Chart is based on a special matrix.

For convenience, I’ve created two perspectives, switch between them.

Good luck.

Dear Richie,

Thank you for your proposal. It’s great !

But if you have the same level of sales for 3 different customers the calculation is not ok.

I send you in appendix a matrix with this problem.

How can we solve this problem ?

Thank you for your help.

BRs

Denis

I have tried some calculations here…is this what you have in mind. I see that 2.78% of let’s call the category “Customers” generate 80.14% of the sales.