ABC XYZ Analysis is a categorization tool aimed at identifying the bestperforming products in one’s catalog. This information is often used to set service level and safety stock targets. Unlike ABC Analysis, which focuses exclusively on a single variable (typically revenue), ABC XYZ attempts to quantify a second dimension (variance). In this tutorial, Conor explores ABC XYZ and delivers his verdict.

Key questions covered in this whiteboxing:

* Does ABC XYZ deliver the kinds of insights it promises?
* Is its use of statistics sufficiently robust?
* Is it sensitive enough to subtle demand patterns?

Additional learning:

https://www.lokad.com/abcanalysis(i...

https://www.lokad.com/abcxyzanalysi...

https://www.lokad.com/prioritizedinv...

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