XYZanalyysi

XYZanalyysi, also known as XYZ analysis, is a method used in inventory management to classify items according to the variability of their demand. The goal is to supplement the traditional ABC analysis by capturing how consistently items are consumed, which influences forecasting accuracy and stock decisions.

Items are grouped into three categories:

- X: very stable demand with low variability and predictable consumption.

- Y: moderate variability, with some fluctuations or seasonal patterns.

- Z: highly variable or irregular demand, often with sporadic orders.

Classification is typically based on historical demand data over a chosen period, using measures such as the coefficient of variation (CV), which is the standard deviation divided by the mean. A low CV indicates X, a mid-range CV indicates Y, and a high CV indicates Z. Thresholds are not universal and may vary by organization or context.

Use of XYZ analysis includes informing safety stock levels, reorder points, and forecasting approaches for each category. When combined with ABC analysis in an ABC-XYZ framework, inventory management becomes more nuanced: X items usually require less buffer, Z items demand more flexible replenishment and larger safety stocks, and Y items call for a balanced strategy.

Limitations include reliance on quality historical data and the potential for category shifts over time due to changing demand patterns or seasonality. Regular review and alignment with broader inventory policies are recommended to maintain effective stock control.