TY - JOUR

T1 - Integration of demand forecasts in ABC-XYZ analysis

T2 - Practical investigation at an industrial company

AU - Scholz-Reiter, Bernd

AU - Heger, Jens

AU - Meinecke, Christian

AU - Bergmann, Johann

PY - 2012/4

Y1 - 2012/4

N2 - Purpose: Item classification based on ABC-XYZ analysis is of high importance for strategic supply and inventory control. It is common to perform the analysis with past consumption data. In this context, the purpose of this study is to test the hypothesis that an integration of demand forecasts can improve the performance of item classification, in particular the performance of ABC-XYZ analysis. Design/methodology/approach: For the study, real data of an industrial enterprise in the mechanical engineering sector (focal company) were analyzed and evaluated. Findings: The study shows that a comprehensive data analysis of the focal company can recommend a specific implementation of the ABC-XYZ classification. In contrast to the classic method of making the ABC-XYZ analysis based on consumption data only, the approach developed in this paper offers considerable advantages. These are quantifiable in respect to an assumed optimal reference classification. Originality/value: The evaluation of the results is very promising and applicable to other branches besides mechanical engineering.

AB - Purpose: Item classification based on ABC-XYZ analysis is of high importance for strategic supply and inventory control. It is common to perform the analysis with past consumption data. In this context, the purpose of this study is to test the hypothesis that an integration of demand forecasts can improve the performance of item classification, in particular the performance of ABC-XYZ analysis. Design/methodology/approach: For the study, real data of an industrial enterprise in the mechanical engineering sector (focal company) were analyzed and evaluated. Findings: The study shows that a comprehensive data analysis of the focal company can recommend a specific implementation of the ABC-XYZ classification. In contrast to the classic method of making the ABC-XYZ analysis based on consumption data only, the approach developed in this paper offers considerable advantages. These are quantifiable in respect to an assumed optimal reference classification. Originality/value: The evaluation of the results is very promising and applicable to other branches besides mechanical engineering.

KW - ABC-XYZ analysis

KW - Demand forecasting

KW - Inventory control

KW - Item classification

KW - Mathematical analysis

KW - Purchasing

UR - http://www.scopus.com/inward/record.url?scp=84864111983&partnerID=8YFLogxK

U2 - 10.1108/17410401211212689

DO - 10.1108/17410401211212689

M3 - Journal articles

AN - SCOPUS:84864111983

VL - 61

SP - 445

EP - 451

JO - International Journal of Productivity and Performance Management

JF - International Journal of Productivity and Performance Management

SN - 1741-0401

IS - 4

ER -