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XYZ Analysis / RRS Analysis


What is XYZ Analysis?

XYZ Analysis is a Demand Forecast Analysis that takes into account statistical data as a continuation of ABC Analysis (Pareto Analysis). In other words, it adds a horizontal, statistical dimension to ABC Analysis, which operates vertically.


Determines how to act according to product demand fluctuations.


ABC Analysis, XYZ Analysis, ABC-XYZ Analysis Criteria
XYZ Analysis Criteria

How is XYZ Analysis done?

  1. ABC Analysis is done,

  2. The period intervals to be analyzed are determined,

  3. Standard Deviation of the specified period is calculated,

  4. Coefficient Variation is found => Standard Deviation / Period Average,

  5. XYZ Grouping is done (Percentages can be revised according to need);

  • X: <=10

  • Y: > 10% & <=25

  • Z: > 25%


In the presentation below, how to do it is explained in detail visually and a sample document is provided;



ABC-XYZ Quandrant


ABC Analysis, XYZ Analysis, ABC-XYZ Analysis
ABC-XYZ Analysis

Some Benefits of XYZ Analysis

  • Gives direction on which products to focus on

  • Helps keep inventory costs to a minimum on a periodic basis

  • Reduces the possibility of being out of stock

  • Helps use production capacity efficiently



 

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