| ABC/XYZ analysis (SCM-APO-FCS) |
A method of grouping planning objects (characteristic value combinations, SKUs) based on their value (revenue or sales volume) and dynamics of consumption or sales. During the analysis, the planning objects are assigned one of the classes of ABC and XYZ simultaneously. Analysis based on value (ABC analysis) can be done by applying Pareto's rule on the value of individual items in a specific time horizon. Analysis based on the dynamics of consumption (XYZ analysis) means the calculation of a variance coefficient (for example, standard deviation) of consumption or sales in a specific time horizon. For example, a planning object that has the values BY might mean a planning object with medium volume, and trend or seasonal demand.