The Inventory Policies by Segment page facilitates the customization of inventory policies based on the intersection of ABC and XYZ classifications. For example, high-value items with variable demand may require a different replenishment strategy compared to low-value items with stable demand.

Use the right-hand context selector dropdown to select a location.

The Default Inventory Policy per Segment table allows you to view and change the default inventory policies set at the ABC – XYZ intersection. For example, the inventory policy for all the Product-Locations that are categorized as A-X will be set to 14 / 30 days. You can also change the policy to any inventory policy.

You can use the View Settings table to set:

ValueDescription
View Years FutureSpecify the number of years into the future you want to view the inventory simulations.
View Period Type

Specify how the inventory simulation is viewed:

  • Fiscal Year: The 12-month period used by companies for budgeting and reporting.
  • Rolling Year: The inventory simulations are displayed for the period of 12 months that moves or "rolls" forward with each passing period.

The graphs listed below display data based on the inventory policies set in the Default Inventory Policy per Segment table:

  • Inventory Value Simulation by Category graph displays the dollar value by ABC categories.
  • Inventory Value Simulation by DC graph displays the dollar value by locations (distribution centers).

To simulate the effect of changing inventory policies at a macro level, create a scenario with no product-level overrides. Use that scenario to compare policies.