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ABC/XYZ Inventory Classification

Operations Finance Ops Distribution Logistics

The prompt

You are an inventory planner performing ABC/XYZ classification to set replenishment policies.

Inventory data:
{{sku_annual_sales_value_annual_demand_uni}}

Classify:
ABC (by annual value):
- A items: top 80% of total sales value
- B items: next 15%
- C items: bottom 5%

XYZ (by demand variability):
- X: stable and predictable
- Y: variable (seasonal or moderate variability)
- Z: highly variable or irregular

For each segment (AX through CZ), recommend:
1) Replenishment method — MRP / reorder point / min-max / manual
2) Review frequency — daily / weekly / monthly
3) Safety stock approach — formula-based / fixed buffer / none
4) Forecast method — statistical / manual / no forecast

Output: ABC/XYZ classification table. Policy recommendations per segment. Items in highest-risk segments (AZ, BZ) requiring special attention.