ABC-XYZ Inventory Analysis

Advantages

• Categorizes items based on both value (ABC) and demand variability (XYZ).
• Focuses attention on high-priority items.
• Identifies and mitigates risks through tailored strategies.
• Addresses uncertainties in demand and value.
• Enhances forecasting accuracy with demand variability considerations.
• Reduces stockouts or overstock situations.
• Fosters a culture of continuous improvement.
• Regularly reviews and adjusts classifications.
• Optimizes supply chain processes.
• Promotes cost-efficient inventory management.
• Particularly relevant for high-value items with stable demand.
• Provides a structured framework for inventory management.