ABC-XYZ Inventory Analysis Calculator
Classify inventory items using ABC analysis (value) and XYZ analysis (demand variability)
About this calculator
The ABC-XYZ Inventory Analysis Calculator helps businesses optimize inventory management by classifying items using two critical dimensions: value contribution (ABC analysis) and demand predictability (XYZ analysis). ABC analysis categorizes items by their revenue impact (A=high value, B=medium, C=low), while XYZ analysis groups them by demand variability (X=stable, Y=variable, Z=unpredictable). This dual classification enables more strategic inventory control, better resource allocation, and improved supply chain efficiency by identifying which items require tight control versus those suitable for automated reordering.
How to use
Input your inventory data including item names, unit costs, annual quantities sold, and historical demand data. The calculator will automatically compute each item's annual value and demand variability coefficient. Items are then classified into nine categories (AX, AY, AZ, BX, BY, BZ, CX, CY, CZ) with specific management recommendations for each category.
Frequently asked questions
What's the difference between ABC and XYZ analysis?
ABC analysis focuses on item value/revenue contribution, while XYZ analysis examines demand pattern predictability and variability over time.
How are the classification thresholds determined?
ABC uses cumulative value percentages (typically 80-15-5%), while XYZ uses coefficient of variation thresholds for demand stability assessment.
Which inventory categories need the most attention?
AX items (high value, stable demand) need tight control, while AZ items (high value, unpredictable demand) require safety stock buffers.