Strategy for XYZ Analysis

The XYZ analysis is a business analysis procedure that classifies materials by their regularity of usage, which is measured using the variation coefficient.

As with the ABC analysis, consumptions, sales orders, billing documents, or planned independent requirements can be used as data sources, for example. The analysis options are the same as for the ABC analysis.

In the XYZ analysis, you can further subdivide master data objects that are classified as Z materials; namely into Z materials and N materials that include a certain number of zero periods in addition to the classification.

This is useful, for example, in identifying sporadic (that is, occurring on an infrequent basis) consumption and drawing valuable conclusions.