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ABC analysis is the Pareto method. X, Y, Z analysis is used to assess demand stability.

This is one of the most well-known and simplest types of analysis, but also the most relevant. 20% of effort produces $80 of results, so it's best to conduct an ABC analysis not only for all of the company's products and goods, but also for all customers, suppliers, and partners, as well as to assess the percentage of defects in production. We'll divide all customers into three groups based on their contribution to the company's overall revenue. Group A includes customers who account for 80% of the company's revenue, Group B for 15%, and Group C for the remaining 5%. Group C should comprise no more than 50% of the total number of customers; otherwise, serving the smallest clients will make it difficult to reach the most profitable ones.

You can use the automatic calculation of A, B, and C analysis results right here on the website, without registration. To do this, click the button below to go to the algorithm page, upload your data using the "Select File" button. Then, click Run A, B, and C analysis and see a table of products divided into groups, where A represents products that account for 80% of the volume, B represents 15%, and C represents the remaining 5%.

Along with A, B, and C analysis, the X, Y, and Z analysis method is used to classify products based on demand stability and predictability. The coefficient of variation is calculated, which is defined as the standard deviation relative to the mean. Products with a coefficient of variation of less than 10 percent are classified into group X, between 10 and 25 percent into group Y, and more than 25 percent into group Z. The most attractive products for production and resale are those falling into both groups A and X, while the most problematic are those in groups A-Z.