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ABC/XYZ Matrix
Inventory Management

ABC/XYZ Matrix

Combined value-and-variability segmentation used to tailor planning and inventory policies.

Examples

  1. 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.
  2. 02Each quarter, the material planner reviews the ABC/XYZ matrix and moves items whose value or demand pattern has changed.
  3. 03Applying different policies to each ABC/XYZ matrix class cuts total stock by 18 % while service for A items stays at 98 %.

Related terms

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