ABC / XYZ analysis

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The ABC / XYZ analysis is a materials management method for better classification of stocks in a company. It is made up of the ABC analysis and the XYZ analysis . The cube analysis is an extension . The time component is also considered (e.g. turnover rate, lead time, replenishment time) and a cube with 27 fields is created.

need

The inventory classification used in many companies based on the ABC analysis usually does not subdivide the articles in a sufficiently differentiated manner. It only assesses the articles according to their share of the company's turnover . In addition, however, the fluctuation in sales of an article is also a relevant aspect for warehouse management.

The ABC / XYZ analysis combines both instruments and thus offers easier warehouse management.

execution

In a first step, both procedures must be carried out separately from each other as usual. Each article can then be classified into one of nine categories.

A
value share 70-80% 		B
Value share 15-20% 		C
Value share 5–10%
X
High forecast accuracy
Y
Average forecast accuracy
Z
Poor prediction accuracy

The combinations marked in yellow are considered suitable for just-in-time production in the literature .

ABC article

  • A-Article: Value share of approx. 70-80%
  • B item: value share of approx. 15-20%
  • C-Article: Value share of approx. 5–10%

XYZ item

  • X-Article: Articles with constant demand → High forecast accuracy
  • Y-Article: Article with fluctuating demand → medium forecast accuracy
  • Z-Article: Articles with irregular demand → Low forecast accuracy

interpretation

  • AX and BX articles have a high proportion of value and are easy to forecast because they are subject to even consumption. They are therefore relatively easy to control.
  • AZ and BZ articles are to be regarded as problematic. They make up a high proportion of sales, but are difficult to control due to their irregular needs. If too many articles in this category are stored, the storage costs increase. Insufficient storage can lead to bottlenecks in production.

swell

  1. ^ Gerhard Sommerer: corporate logistics. Selected tools for planning and organizing logistic processes. Munich u. a. 1998, ISBN 3-446-19370-7 , p. 165