ABC-XYZ Classifier Skill

ABC-XYZ Classifier

Overview

The ABC-XYZ Classifier is a multi-dimensional inventory classification skill that combines value-based (ABC) and demand variability (XYZ) analysis to enable differentiated inventory policies. It automates Pareto analysis and demand pattern classification to recommend optimal stocking strategies, service levels, and review frequencies.

Capabilities

Pareto Analysis Automation: Automatically classify inventory into A, B, C categories based on value contribution using Pareto principles
Demand Pattern Classification: Analyze demand variability to classify items as X (stable), Y (variable), or Z (erratic)
Inventory Policy Recommendation: Recommend appropriate inventory policies based on combined ABC-XYZ classification
Service Level Differentiation: Suggest differentiated service level targets based on item classification and business importance
Review Frequency Optimization: Determine optimal inventory review frequencies for each classification
Stocking Strategy Suggestions: Recommend make-to-stock, make-to-order, or hybrid strategies based on classification
Cross-Docking Candidacy Identification: Identify items suitable for cross-docking based on velocity and predictability

Tools and Libraries

Statistical Analysis Libraries (pandas, numpy)
Inventory Optimization Models
Data Visualization Libraries
Classification Algorithms

Used By Processes

ABC-XYZ Analysis
Reorder Point Calculation
Dead Stock and Excess Inventory Management

Usage

skill: abc-xyz-classifier
inputs:
  inventory_data:
    - sku: "SKU001"
      annual_value: 150000
      monthly_demand: [100, 98, 102, 99, 101, 100, 98, 103, 99, 100, 101, 99]
      unit_cost: 125
    - sku: "SKU002"
      annual_value: 45000
      monthly_demand: [50, 75, 30, 60, 45, 80, 35, 55, 70, 40, 65, 50]
      unit_cost: 75
  classification_parameters:
    abc_thresholds:
      A: 80  # Top 80% of value
      B: 95  # Next 15% of value
    xyz_thresholds:
      X: 20  # CV < 20%
      Y: 50  # CV 20-50%
outputs:
  classifications:
    - sku: "SKU001"
      abc_class: "A"
      xyz_class: "X"
      combined_class: "AX"
      annual_value: 150000
      value_rank: 1
      cv_percent: 1.8
      recommendation:
        service_level: 99.5
        review_frequency: "daily"
        stocking_strategy: "make_to_stock"
        safety_stock_method: "statistical"
    - sku: "SKU002"
      abc_class: "B"
      xyz_class: "Y"
      combined_class: "BY"
      annual_value: 45000
      value_rank: 15
      cv_percent: 32.5
      recommendation:
        service_level: 97.0
        review_frequency: "weekly"
        stocking_strategy: "make_to_stock"
        safety_stock_method: "buffer"
  summary:
    AX_count: 45
    AY_count: 30
    AZ_count: 25
    BX_count: 150
    BY_count: 200
    BZ_count: 150

Integration Points

Enterprise Resource Planning (ERP) Systems
Inventory Management Systems
Demand Planning Systems
Warehouse Management Systems (WMS)
Financial Systems

Performance Metrics

Classification accuracy
Policy compliance rate
Service level achievement by class
Inventory investment by class
Turn rate by class

Agent Skills: ABC-XYZ Classifier

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Skill Files