This page provides segmentation of products by customer based on the magnitude of their demand (ABC) and the volatility of that demand (XYZ).

Before you start

Use the context selector at the top-right to select a customer. Additionally, you can manually enter the required value using the search function.

ABC–XYZ Analysis: Product Customer

The parameters are shown in the Effective Parameters card. You can configure the parameters in the Edit Parameters card. When you update parameters, the new values are shown in the Effective Parameters card, and are applied globally.

ParametersValues
Periods for ABC: ProductEnter the number of periods used to calculate the ABC product classification.
Data for ABCEnter the selected history in units (U) or revenue (R).
C-VAR
  • C–VAR (Min): The system-calculated value for the selected product and customer combination, calculated based on minimum C–VAR.
  • C–VAR (Mean): The system-calculated value for the selected product and customer combination. It's calculated based on C–VAR, which is defined as Standard Deviation / Mean of pure history.
  • C–VAR (Trend): The system-calculated value for the selected product and customer combination. It's calculated based on C–VAR, which is defined as Standard Error / Mean of the Trend Line.
  • C–VAR (Corrected Mean): The system-calculated value for the selected product and customer combination. It's calculated based on C–VAR, which is defined as Corrected Mean of pure history.
  • C–Var (Corrected Trend): The system-calculated value for the selected product and customer combination. It's calculated based on C–VAR, which is defined as Corrected Mean of the Trend Line.

Note: The parameters and Pareto graph apply to all products.

The Pareto Analysis Graph – All Products (Refresh) displays Pareto analysis by demand volume for all products. The graph shows the demand data in revenue terms by product in columns, and a cumulative percentage curve for the number of periods. It also shows the total amount of money that each product makes. 

The Current System Recommendation table displays the system-generated product segmentation. You can determine the level of product hierarchy by selecting a product from the context selector at the bottom of the table. You can also select the context for the values:

ParameterDescription
Count of ProductsThe number of product records by ABC segment in the selected product hierarchy.
Sum of dataThe sum of the revenues or units by ABC segment. It's dependent on the data for ABC and can be in units or revenue. 
% of Total DataThe percentage value of the total demand data by ABC segment.

The Current System Recommendation chart displays provides a graphical view of the XYZ product segmentation.

Note: The context selectors in the Current System Recommendation table and chart cards are synchronized. An option selected for the ABC table is applied to the XYZ graph, and the other way around.

Note: Use legends to view information for any week. Select a legend to show its details in the chart. Hover the cursor over a chart legend to display the legend's values in the chart. Hover the cursor over the data curve to display the data point values.

Steps

To update the chart, select Update Chart. This runs processes to update the ABC and XYZ values on the page.

To update prior forecast, select Update Prior Forecast for ABC. This runs a processes to update the ABC values in the system.