Short & sweet: The XYZ analysis for assessing planning feasibility

The more regularly a material is used, the easier it is to plan. The XYZ analysis was therefore developed to differentiate the range of articles in terms of predictability and thus planning capability.

By determining the coefficient of variation, the consumption patterns are categorized according to X, Y or Z characteristics: X items have a relatively even consumption with only a few fluctuations. Y articles have greater fluctuations in consumption and are more difficult to plan. Z articles are characterized by sporadic consumption with strong fluctuations, making them considerably more difficult to plan.

Our tip:

Very few ERP systems offer an XYZ analysis. A recommendation for the use of scheduling and planning procedures is made, if at all, on the basis of the ABC analysis. However, the purely sales or quantity-oriented ABC analysis does not allow any statement to be made about consumption behavior. We therefore recommend carrying out an XYZ analysis in addition to the ABC analysis and defining the scheduling and planning procedures and the degree of automation of the procurement processes according to the combination of indicators. Enormous savings potential in stock levels and higher delivery readiness levels can be achieved as a result. If you are interested, we will be happy to carry out these analyses for you and make recommendations for suitable planning and scheduling procedures for each article class. Just give us a call.

Dr. Bernd Reineke

Dr. Bernd Reineke

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