ABC-XYZ Classification
ABC splits your portfolio by share of value — the 80/20 principle applied to your own data. XYZ splits it by demand variability. You choose the cut-offs and the tier names, then run the matrix.
Classification inputs
ABC uses the cumulative share of sales value. XYZ uses the coefficient of variation of monthly demand — the lower the variation, the more predictable the item.
ABC — share of sales value
C remainder
5%
XYZ — demand variability (CV)
Z above
50% CV
Running on a demo portfolio of 240 items until your uploaded file is connected.