1
Set the cut-offs
The defaults are the usual rule of thumb. Move them and watch the classes change.
ABC ranks SKUs by annual spend (unit price × annual demand). A SKU is class A if the cumulative spend before adding it is still below the A cut-off. XYZ uses the coefficient of variation of monthly demand, CV = standard deviation ÷ average (sample standard deviation, 12 months). Your answers below are checked against the cut-offs shown here.
2
The Pareto curve and the SKU table
Click a row to see its monthly demand
Pick a SKU
3
The ABC-XYZ matrix and your policy for each cell
Counts and share of spend, then choose a policy
4
Your tasks
Answers are checked against the cut-offs in section 1
5