ABC- / XYZ-Analysis

ABC / XYZ analysis is a method by which companies can classify their stock levels based on value, turnover rate and forecasting accuracy. Inventories can be managed more effectively using ABC / XYZ analysis, as priorities can be set and different inventory strategies can be developed for different product groups.

The ABC analysis divides stock into three categories:

• A category: items in category A have a high value and a high turnover rate, but only make up a small percentage of the stock quantity.
• B category: Items in this category have a moderate value and a medium turnover rate. They make up a larger percentage of the stock quantity than the A items.
• C category: The C category includes items with a low value, but which make up the largest proportion of the stock quantity. These items have a low turnover rate and contribute less to the total value of the stock.

The XYZ analysis, on the other hand, classifies stock levels based on their predictability and their impact on stock levels:

• X category: X items are easy to plan and have a high level of predictability in terms of order quantities and delivery times.
• Y category: Items in this category are less predictable and require a certain degree of flexibility in the ordering and storage strategy.
• Z category: Z items are unpredictable and difficult to plan. They may require a reactive ordering strategy and special stock management techniques.