Item classifications are used to structure a company’s usually extensive range of items with regard to logistical decisions.
The WMQ classification is a less well-known but nevertheless important classification for many logistical decisions. It analyzes each item according to the regularity of its demand frequency to determine whether it is generally required on a daily, weekly, monthly or quarterly basis.
An item that was ordered on more than 50% of the days in an analysis period is considered a daily scheduled item.
The weekly, monthly and quarterly frequencies are defined accordingly. By looking at the demand frequency of an item, the WMQ analysis thus complements the XYZ analysis, which evaluates the fluctuation range in demand for an item.
Our tip: The WMQ analysis helps you, among other things, with the item-specific definition of the so-called planned value distribution. This refers to the breakdown of forecast requirements from a higher-level forecast basis (e.g. month) to lower-level ones, such as weeks or days.
Further information on this topic can be found here:
