Combining ABC and XYZ analyses to manage inventory

Improve framework to develop and refine inventory policies, systems and procedures

By Steve Greene

ABC analysis is an efficient and effective tool to optimize inventory. This approach to manage inventory classifies stock items by the amount of value they bring to a business. This value could be measured by many variables, such as revenue, profit, sales demand, service level requirements, relation to other items, life cycle and customer value.

You must be an IISE member to have full access to this content. Please log in at the top right corner of this Web page. 

IISE members visiting this site for the first time must register. As part of this process you will create a user name and password. This is a one-time process that requires your member number. 

If you are not a member, join IISE now and begin enjoying benefits immediately, including full access to ISE magazine.