An Application of Xyz Analysis in Company Stock Management

• Main Author: Irena Nowotyńska
• Format: Article
• Language: English
• Published: Publishing House of Rzeszow University of Technology 2013-07-01
• Series: Modern Management Review
• Subjects: xyz analysis, management, storage management
• Online Access: http://doi.prz.edu.pl/pl/pdf/zim/43

Keeping inventory is often a prerequisite for the functioning of the production and commercial companies as well as multiple service providers. The level of inventories, as well as charges depends on sales – but the charges are the result of sales (charges are the result of sales, while sales volume is also dependent on debt management strategies), and the stocks precede the sales; they are one of the conditions . The stocks should be adjusted to the expected sales. In the article there have been presented the ABC and XYZ analyses in the application of inventory management exemplified by an office stationery company. The ABC analysis for inventory shows that a relatively small number of items and the storage unit are the most important or predominant part in all of their value. The classification system allows to include the stored position into three groups according to the relative importance or value of the items making up the group. The XYZ analysis shows the differences between the goods in stocks and the used ones. The Z elements are used in a very irregular way and therefore, the size of the supply is unpredictable. For those parts there should be chosen a good supplier where the delivery time is short, so as to be able to rely on small batches of fast deliveries just in time.