ABC/XYZ Matrix
Inventory Management
ABC/XYZ Matrix
Combined value-and-variability segmentation used to tailor planning and inventory policies.
Examples
- 01The ABC/XYZ matrix places a high-value, stable item in AX, which is replenished by kanban, and a low-value, erratic item in CZ, which is ordered on demand.
- 02Each quarter, the material planner reviews the ABC/XYZ matrix and moves items whose value or demand pattern has changed.
- 03Applying different policies to each ABC/XYZ matrix class cuts total stock by 18 % while service for A items stays at 98 %.