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XYZ Analysis
Inventory Management

XYZ Analysis

Segmentation of items by demand variability or forecastability, with X stable and Z highly variable.

Examples

  1. 01XYZ analysis shows that screws are X items with stable weekly demand, while special valves are Z items with very erratic demand.
  2. 02The material planner uses XYZ analysis to decide which items can be planned by forecast and which need more safety stock.
  3. 03Moving X items to kanban, based on XYZ analysis, frees planners to focus on the hard-to-forecast Z items.

Related terms

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