Application of ABC and XYZ Analysis to Inventory Optimization at a Commercial Enterprise

Abstract

Inventory management at an enterprise is the essential logistics function. Reducing inventory maintenance costs and optimizing the range of goods while focusing on consumer demand analy-sis are inextricably linked to inventory management methods. This article describes the differentiated inventory management model of the ABC-XYZ classification matrix in relation to the inven-tory of Karandash LLC commercial enterprise (Tomsk). Inventory management is a highly relevant issue, since the company has several branches, cooperates with many suppliers, and its range of office supplies includes more than 30 000 items. The ABC-XYZanalysis of the inventory of this commercial enterprise allowed us to determine strategies for optimizing inventory and to identify the groups that should be removed from the range, and, vice versa, should be available in stock due to constant demand.

Keywords

• inventory
• inventory management
• abc-xyz model
• variation coefficient
• inventory management strategies