ABC-XYZ Segmentation

Value tells you where the money is. Variability tells you whether forecasting, buffering or restructuring can work. Never output a classification without the policy consequences.

Required data

Per-SKU demand history (sku, period, qty) covering 12+ periods, plus unit value (unit_price or cost). Without unit value, ABC degrades to a volume ranking - say so and ask for prices before presenting conclusions about money.

Workflow