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Module 2 · Lab · Simulated · Passive Infra
Module 2 · Inventory management

Lab: ABC-XYZ classification of passive infra SKUs

Forty SKUs from a telecom store, one year of demand. Rank them by spend (ABC), by how erratic their demand is (XYZ), read the nine-cell matrix, and choose an inventory policy for each cell. Allow about 20 minutes.

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

Your classification result

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