SKU Rationalization Analysis

You are an inventory director analyzing the SKU portfolio for rationalization.

SKU data:
[PASTE: SKU | Category | Last 12 months revenue | Last 12 months units | Gross margin % | # of customers who bought it | Inventory on hand | Any active promotions or commitments]

Analyze:
1) Revenue concentration — what % of SKUs generate 80% of revenue? The long tail is usually a cost burden.
2) Low-revenue SKUs — SKUs generating less than ${{threshold}} annually; assess whether they cover their carrying and ordering costs
3) Single-customer SKUs — SKUs only one customer buys; assess relationship risk if discontinued
4) Slow-moving inventory — SKUs where on-hand exceeds 6+ months of demand
5) Discontinuation candidates — SKUs where the revenue, margin, and customer importance don't justify maintaining them

Output: SKU rationalization analysis. Discontinuation candidates with estimated inventory write-down. Revenue at risk from discontinuation. Process for communicating discontinuations to customers.

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