ABCXYZanalyse

ABCXYZanalyse is a inventory segmentation method that combines two established approaches, the ABC analysis and the XYZ analysis, to improve stock control and procurement planning. It adds a two-dimensional view to traditional item classification, allowing more nuanced stock policies.

ABC analysis classifies items by annual consumption value and importance. A items are high-value and require close monitoring and tighter controls; B items are of intermediate importance; C items are low-value but often numerous and easier to manage at larger volumes. This helps set priorities for ordering, forecasting, and review frequency.

XYZ analysis assesses demand variability using historical data. X items have stable, predictable demand; Y items show seasonal or cyclical variability; Z items exhibit irregular or highly volatile demand. This dimension informs the level of forecasting effort and safety stock needed.

Together, ABCXYZanalyse yields nine segments: AX, AY, AZ, BX, BY, BZ, CX, CY, CZ. Management policies vary by segment: high-value items with variable demand (such as AZ and BZ) typically require tighter controls, more accurate forecasting, and appropriate safety stock, while lower-value or highly stable items (such as CX or CY) can be managed with simpler replenishment.

To apply the method, collect item-level data, calculate annual value, perform ABC ranking, compute variability measures (for example, coefficient of variation) to assign XYZ class, then map results to the nine segments and define stock rules, reorder points, and review frequency. The approach is used in manufacturing, retail, and spare parts management to balance service levels with carrying costs.

Limitations include data quality requirements, sensitivity to calculation methods, and the need for periodic updates as demand patterns change. See also ABC analysis, XYZ analysis, and inventory management.