X-Y-Z analysis is based on value of the stocks on hand (i.e. inventory investment). XYZ analysis is more used in relation of the customer demand for FG (finished goods)

XYZ when combined with FSN analysis helps to classify non-moving items into XN, YN, and ZN group and thereby identify a handful of non-moving items, which account for bulk of non-moving stock.

ABC analysis classifies the raw materials based on their consumption during a particular time period ( usually one year). Depending upon the company to company A B & C items can be as under

A - 5% to 10% of the Items accounting for 60% to 80% of the consumption value B - 10 % to 30% of the Items accounting for 10% to 30% of the consumption value C - 60% to 85% of the Items accounting for 5% to 15% of the consumption value

High runners are built to JIT

Medium runners are produced to stock or to order

and low runners are built to order

XYZ & ABC Analysis of Inventory Management