XYZ Analysis
Inventory Management
XYZ Analysis
Segmentation of items by demand variability or forecastability, with X stable and Z highly variable.
Examples
- 01XYZ analysis shows that screws are X items with stable weekly demand, while special valves are Z items with very erratic demand.
- 02The material planner uses XYZ analysis to decide which items can be planned by forecast and which need more safety stock.
- 03Moving X items to kanban, based on XYZ analysis, frees planners to focus on the hard-to-forecast Z items.