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Utilization of ABC - XYZ Analysis in Stock Planning
Utilization of ABC - XYZ Analysis in Stock Planning
Utilization of ABC - XYZ Analysis in Stock Planning
INTRODUCTION
The object subjected to analysis is an enterprise that sells the goods of household,
radio and television and multimedia. The
firm has been operating on the market
since 2002 and is situated in Mazovian
province. It is an administration subject
within the private sector and is represented by natural person; according to
valid classification [Chmielewski 1997]
it can be counted among the small enterprises. It operates the branch retail trade
that is limited to household goods and
electronic equipment. The enterprises
organization structure has not expanded
form and all employees are directly subordinated to the owner.
METHODOLOGY
In undertaken activity connected with
stock management there can be distin-
90
91
Cumulated
share Ws [%]
3
1 449.0
1 399.00
959.00
999.00
1 699.00
329.00
279.00
299.00
369.00
189.00
269.00
349.00
99.00
1 099.00
199.00
99.00
1 059.00
49.00
189.00
999.00
4
29
22
18
16
8
35
37
33
23
42
29
10
31
2
11
22
2
43
11
2
5
42 021.00
30 778.00
17 262.00
15 984.00
13 592.00
11 515.00
10 323.00
9 867.00
8 487.00
7 938.00
7 801.00
3 490.00
3 069.00
2 198.00
2 189.00
2 178.00
2 118.00
2 107.00
2 079.00
1 998.00
6
18.48
13.53
7.59
7.03
5.98
5.06
4.54
4.34
3.73
3.49
3.43
1.53
1.35
0.97
0.96
0.96
0.93
0.93
0.91
0.88
7
18.48
32.01
39.6
46.63
52.61
57.67
62.21
66.55
70.28
73.77
77.2
78.73
80.08
81.05
82.01
82.97
83.9
84.83
85.74
86.62
Group
Sale ratio
Ws [%]
2
TV LCD
Refrigerator-freezer
Washing machine
Washing machine
TV LCD
Microwave cooker
Iron
Vacuum cleaner
Monitor
Iron
Computer loudspeakers
Microwave cooker
Hair cutter
Refrigerator-freezer
Kettle
Kettle
Cooker
Dryer
Dryer
Dish-washer
Sale value
(Ws) [PLN]
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
No Product
Unitary
price (Cj) [z]
92
Table 1. (continued)
1
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
2
Electric shaver
Juice extractor
Hair straightener
Kettle
Headphones
Curler
Camera
Electric shaver
Freezer
Camera
Dish-washer
Toaster
Kitchen robot
Mixer
Vacuum cleaner
Extension cable 5 m
Blender
Home cinema
Cooker
Vacuum cleaner
CD-RX discs
Monitor LG
Toothbrush
Vacuum bottle
Batteries Duracell
HP device
Toaster
Ventilating hood
Washing machine
TV LED
STOTAL
3
99.00
189.00
52.00
249.00
169.00
75.00
749.00
119.00
1 289.00
279.00
1 099.00
59.00
499.00
249.00
319.00
27.99
189.00
899.00
869.00
119.00
16.99
799.00
79.00
54.90
9.99
189.00
179.00
189.00
1 469.00
2 469.00
4
20
10
35
7
10
22
2
12
1
4
1
17
2
4
3
34
5
1
1
7
49
1
10
12
57
3
2
1
0
0
5
1 980.00
1 890.00
1 820.00
1 743.00
1 690.00
1 650.00
1 498.00
1 428.00
1 289.00
1 116.00
1 099.00
1 003.00
998.00
996.00
957.00
951.66
945.00
899.00
869.00
833.00
832.51
799.00
790.00
658.80
569.43
567.00
358.00
189.00
0.00
0.00
227 412.40
6
0.87
0.83
0.8
0.7
0.74
0.72
0.66
0.63
0.57
0.49
0.48
0.44
0.44
0.44
0.42
0.42
0.4
0.4
0.38
0.37
0.37
0.35
0.35
0.29
0.25
0.25
0.16
0.08
0
0
100
7
87.49
88.32
89.1
89.89
90.6
91.3
92.01
92.64
93.21
93.7
94.18
94.62
95.06
95.5
95.92
96.34
96.75
97.15
97.53
97.9
98.27
98.62
98.97
99.26
99.51
99.76
99.92
100
100
100
93
stock of these two groups are inaccessible for the customers. In addition it is
possible that at the change in demand
structure, the non-assignable products
of C group will be sold in future in far
bigger quantities. It means that a proper
importance should be put down to particular groups in order to be informed
on current situation and be able to use
appropriate solutions in stock management in the nick of time. Besides, in the
case of availability of data that cover the
longer period, it is possible to investigate
the demand changes with time and the
potential trends or seasonal changes.
XYZ CLASSIFICATION
The XYZ classification is a modification
of ABC analysis and consists in classification of products (in the case of a trade
enterprise), based on the structure (rate)
of their selling; therefore, it provides
with the knowledge essential in decision
making in stock management. Apart
from the assumed criterion according to
the value (BC analysis), to achieve better
segmentation of products one should
divide them also according to the sale
quantity. To this end the XYZ classifica-
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X
Microwave cooker (6)
Iron (7)
Vacuum cleaner (8)
Iron (10)
Y
TV LCD LG (1)
Refrigerator-freezer (2)
Washing machine (3)
Washing machine (4)
Monitor (9)
Computer loudspeakers (11)
Kettle (15)
Kettle (16)
Dryer (19)
Electric shaver (21)
Hair straightener (26)
Electric shaver (28)
Toaster (32)
Z
TV LCD (5)
Microwave cooker (6)
Refrigerator-freezer (14)
Cooker (17)
Dish-washer (20)
Juice extractor (22)
Kettle (24)
Headphones (25)
Camera (27)
Freezer (29)
Camera (30)
Dish-washer (31)
Kitchen robot (33)
Mixer (34)
Vacuum cleaner (35)
Blender (37)
Home cinema (38)
Cooker (39)
Vacuum cleaner (40)
Monitor (42)
Toothbrush (43)
HP device (46)
Toaster (47)
Ventilating hood (48)
Washing machine (49)
TV LED (50)
Source: own elaboration (in parentheses the product positions in assortment according to Tab. 1).
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