Great video. Thanks a lot. There are not many such videos on KZread for inventory management professionals. ❤

@JakobBeer

12 күн бұрын

Thank you very much!

Great video. A question- is XYZ normally categorized on CoV? - where I work they classify it purely on order volume. (Which I’m now questioning 😅)

@JakobBeer

Күн бұрын

Thank you! Coefficient of Variation (CoV or CV) is independent of the unit of analysis you use. It is a measure of variability and dimensionless. In the video, I used orderlines, but you can use volume or quantities just as well.

@martyc5674

Күн бұрын

@@JakobBeer thanks Jacob. We actually use orderlines also- but literally the volume of them not the variability(eg the SKUS that contribute to 80% of all our orderlines are X, the next 15% are Y, and the last 5% are Z) - variability is not considered at all. I think we are doing it wrong- variability should of course be considered.

@JakobBeer

23 сағат бұрын

Alright, I see. What you are describing is typically called ABC Analysis. ABC Analysis is a way of operationalizing the Pareto Principle whereas XYZ Analysis aims at understanding variability (and thus implicitly predictability) of demand. You can also combine the two (making it an ABC-XYZ Analysis) in order to get a better understanding of the combination of importance and variability.