ABC-XYZ Analysis Tool

Most of your inventory value sits in a small share of SKUs, yet most teams manage every SKU the same way. Paste usage by SKU to rank items by value and demand variability, then get a stocking policy for each of the nine classes.

Pareto ABC
XYZ variability
9-box policy matrix
CSV with policies

The vital few

27% of SKUs → 80% of value

60 SKUs · $3,859,481 consumed a year

Class A

16 SKUs

$3.1M · 80.5% of value

Class B

12 SKUs

$562K · 14.6% of value

Class C

32 SKUs

$191.6K · 5% of value

01Usage by SKU

Columns: sku, description, unit_cost then either annual_qty or one column per month (needed for XYZ).

sku,description,unit_cost,jan,feb,mar,apr,may,jun,jul,aug,sep,oct,nov,dec
SKU-001,"Chicken breast 40 lb",90.82,2,5,7,8,8,6,2,2,2,1,2,2
SKU-002,"Ground beef 80/20 10 lb",136.31,28,74,105,116,105,60,25,28,32,25,30,28
SKU-003,"Salmon fillet 10 lb",127.32,6,5,4,5,5,6,5,5,5,5,5,4
SKU-004,"Fryer oil 35 lb",16.08,3,0,11,1,6,0,9,1,0,8,0,6
SKU-005,"Romaine hearts 24 ct",67.63,85,76,92,95,90,95,86,75,80,88,92,90
SKU-006,"Burger buns 8 ct x 12",57.84,91,81,106,83,96,93,87,104,94,94,92,107
SKU-007,"Crushed tomatoes #10 x 6",120.17,32,78,116,129,107,82,34,36,34,36,19,32
SKU-008,"Tipo 00 flour 50 lb",94.65,0,0,0,707,837,101,0,135,1008,569,945,61
SKU-009,"Olive oil 3 L",151.2,93,95,113,96,114,98,112,118,114,91,107,92
SKU-010,"Jasmine rice 50 lb",123.61,230,225,216,233,272,229,263,239,225,256,267,246
SKU-011,"Mozzarella 6 x 5 lb",6.45,434,405,438,353,427,422,439,410,429,442,432,381
SKU-012,"Heavy cream 12 qt",73.18,72,164,229,266,207,136,57,52,50,44,44,69
SKU-013,"Nitrile gloves L",6.37,1,1,1,1,1,1,1,1,1,1,1,1
SKU-014,"Quat sanitizer 1 gal x 4",12.49,21,1,0,99,4,7,89,0,13,174,0,160
SKU-015,"To-go clamshell 9 in",8.99,41,102,132,156,135,101,33,37,30,24,31,29
SKU-016,"Paper towel rolls",63.82,94,32,212,221,291,0,0,8,32,310,14,0
SKU-017,"Trash liners 40-45 gal",159.78,1,0,0,5,0,1,1,1,1,0,0,1
SKU-018,"Dish detergent 5 gal",63.92,0,0,0,0,0,0,0,0,4,4,0,6
SKU-019,"Fryer thermostat",8.19,44,43,37,40,42,40,39,38,41,41,38,37
SKU-020,"Walk-in door gasket",177.68,0,1,2,2,2,1,1,0,1,1,0,0
SKU-021,"Ice machine filter",134.6,98,108,117,95,101,103,94,96,101,90,113,107
SKU-022,"Saffron 1 oz",20.66,52,162,240,263,248,170,55,62,56,74,47,66
SKU-023,"Truffle oil 250 ml",158.15,1,1,1,1,1,1,1,1,1,1,1,1
SKU-024,"Microgreens 1 lb",8.71,91,95,83,83,99,99,95,91,77,88,83,74
SKU-025,"Coffee beans 5 lb",21.54,0,66,282,0,0,59,207,70,595,682,92,25
SKU-026,"Oat milk 12 x 32 oz",36.99,37,36,31,31,33,34,38,38,37,30,39,31
SKU-027,"Lemons 115 ct",8.95,189,440,631,742,600,460,132,142,177,173,173,176
SKU-028,"Avocados 48 ct",85.84,0,0,53,0,0,27,3,0,0,37,0,40
SKU-029,"Eggs 15 dz",10.03,14,39,57,68,66,42,18,19,14,18,16,14
SKU-030,"Butter 36 x 1 lb",85.51,241,215,246,259,236,243,242,199,243,228,214,215
SKU-031,"Chicken breast 40 lb (site B)",154.04,25,82,120,130,114,72,19,20,31,25,25,31
SKU-032,"Ground beef 80/20 10 lb (site B)",90.45,61,145,77,0,1,14,5,0,40,113,0,55
SKU-033,"Salmon fillet 10 lb (site B)",37.41,0,0,8,1,0,0,96,0,18,0,19,3
SKU-034,"Fryer oil 35 lb (site B)",168.64,53,49,55,56,57,53,47,45,47,51,58,50
SKU-035,"Romaine hearts 24 ct (site B)",65.91,0,24,0,18,2,3,0,10,11,2,0,1
SKU-036,"Burger buns 8 ct x 12 (site B)",19.84,267,220,214,216,249,259,260,227,277,248,266,276
SKU-037,"Crushed tomatoes #10 x 6 (site B)",54.27,1,1,2,2,2,1,1,0,0,0,0,1
SKU-038,"Tipo 00 flour 50 lb (site B)",89.86,3,2,46,56,41,0,2,29,0,2,8,0
SKU-039,"Olive oil 3 L (site B)",12.31,29,26,26,25,24,27,27,25,30,26,25,26
SKU-040,"Jasmine rice 50 lb (site B)",181.42,1,1,1,1,1,1,1,1,1,1,1,1
SKU-041,"Mozzarella 6 x 5 lb (site B)",17.04,242,304,244,241,314,253,287,309,298,307,241,236
SKU-042,"Heavy cream 12 qt (site B)",99.6,0,2,2,4,0,0,1,0,1,0,1,1
SKU-043,"Nitrile gloves L (site B)",23.2,0,21,4,293,0,73,17,634,228,0,84,0
SKU-044,"Quat sanitizer 1 gal x 4 (site B)",161.89,0,565,0,42,75,607,81,0,84,658,319,0
SKU-045,"To-go clamshell 9 in (site B)",8.05,2,5,7,8,8,6,2,1,2,2,2,2
SKU-046,"Paper towel rolls (site B)",168.7,4,0,3,3,0,0,0,3,0,0,0,0
SKU-047,"Trash liners 40-45 gal (site B)",4.3,370,308,359,351,347,381,397,323,302,347,377,402
SKU-048,"Dish detergent 5 gal (site B)",90.58,101,215,17,0,0,93,0,32,1,0,1,0
SKU-049,"Fryer thermostat (site B)",14.83,130,126,136,113,129,139,105,105,128,117,140,136
SKU-050,"Walk-in door gasket (site B)",73.5,6,1,0,0,181,0,144,3,183,0,138,75
SKU-051,"Ice machine filter (site B)",28.22,2,0,4,0,0,0,0,0,0,0,0,0
SKU-052,"Saffron 1 oz (site B)",21.04,91,92,91,79,82,89,102,82,94,94,96,82
SKU-053,"Truffle oil 250 ml (site B)",74.16,280,372,357,291,340,308,363,290,306,327,356,282
SKU-054,"Microgreens 1 lb (site B)",159.47,150,157,151,152,187,155,161,146,189,179,148,157
SKU-055,"Coffee beans 5 lb (site B)",38.5,247,258,257,267,282,261,232,212,252,255,241,250
SKU-056,"Oat milk 12 x 32 oz (site B)",88.52,2,2,2,2,2,2,2,2,2,2,2,2
SKU-057,"Lemons 115 ct (site B)",182.13,2,3,5,6,5,4,1,1,1,1,2,2
SKU-058,"Avocados 48 ct (site B)",67.59,1,1,1,1,1,1,1,1,1,1,1,1
SKU-059,"Eggs 15 dz (site B)",23.64,242,207,231,213,238,220,231,239,225,231,209,250
SKU-060,"Butter 36 x 1 lb (site B)",139.2,1,1,1,1,1,1,1,1,1,1,1,1

60 SKUs · 12 months of usage

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02Class boundaries

A items up to80% of value

B items up to95% of value

X: steady demandCV ≤ 0.50

Y: variable demandCV ≤ 1.00

Above this is Z (erratic). CV = monthly σ ÷ mean.

03Pareto curve

04ABC × XYZ policy matrix

X · steadyY · variableZ · erraticABC

Select a class to filter the SKU list.

05All SKUs · 60

#	SKU	Annual qty	Unit cost	Annual value	Cumulative	CV	Class
1	SKU-008Tipo 00 flour 50 lb	4,363	$94.65	$412,958	10.7%	1.14	AZ
2	SKU-044Quat sanitizer 1 gal x 4 (site B)	2,431	$161.89	$393,555	20.9%	1.29	AZ
3	SKU-010Jasmine rice 50 lb	2,901	$123.61	$358,593	30.2%	0.08	AX
4	SKU-054Microgreens 1 lb (site B)	1,932	$159.47	$308,096	38.2%	0.09	AX
5	SKU-053Truffle oil 250 ml (site B)	3,872	$74.16	$287,148	45.6%	0.11	AX
6	SKU-030Butter 36 x 1 lb	2,781	$85.51	$237,803	51.8%	0.08	AX
7	SKU-009Olive oil 3 L	1,243	$151.20	$187,942	56.6%	0.10	AX
8	SKU-021Ice machine filter	1,223	$134.60	$164,616	60.9%	0.08	AX
9	SKU-055Coffee beans 5 lb (site B)	3,014	$38.50	$116,039	63.9%	0.07	AX
10	SKU-031Chicken breast 40 lb (site B)	694	$154.04	$106,904	66.7%	0.75	AY
11	SKU-034Fryer oil 35 lb (site B)	621	$168.64	$104,725	69.4%	0.08	AX
12	SKU-012Heavy cream 12 qt	1,390	$73.18	$101,720	72%	0.70	AY
13	SKU-002Ground beef 80/20 10 lb	656	$136.31	$89,419	74.3%	0.66	AY
14	SKU-007Crushed tomatoes #10 x 6	735	$120.17	$88,325	76.6%	0.64	AY
15	SKU-016Paper towel rolls	1,214	$63.82	$77,477	78.6%	1.20	AZ
16	SKU-005Romaine hearts 24 ct	1,044	$67.63	$70,606	80.5%	0.08	AX
17	SKU-006Burger buns 8 ct x 12	1,128	$57.84	$65,244	82.2%	0.09	BX
18	SKU-059Eggs 15 dz (site B)	2,736	$23.64	$64,679	83.8%	0.06	BX
19	SKU-036Burger buns 8 ct x 12 (site B)	2,979	$19.84	$59,103	85.4%	0.09	BX
20	SKU-041Mozzarella 6 x 5 lb (site B)	3,276	$17.04	$55,823	86.8%	0.12	BX
21	SKU-050Walk-in door gasket (site B)	731	$73.50	$53,729	88.2%	1.28	BZ
22	SKU-032Ground beef 80/20 10 lb (site B)	511	$90.45	$46,220	89.4%	1.15	BZ
23	SKU-025Coffee beans 5 lb	2,078	$21.54	$44,760	90.6%	1.35	BZ
24	SKU-048Dish detergent 5 gal (site B)	460	$90.58	$41,667	91.6%	1.74	BZ
25	SKU-027Lemons 115 ct	4,035	$8.95	$36,113	92.6%	0.67	BY
26	SKU-011Mozzarella 6 x 5 lb	5,012	$6.45	$32,327	93.4%	0.06	BX
27	SKU-043Nitrile gloves L (site B)	1,354	$23.20	$31,413	94.2%	1.69	BZ
28	SKU-022Saffron 1 oz	1,495	$20.66	$30,887	95%	0.69	BY
29	SKU-052Saffron 1 oz (site B)	1,074	$21.04	$22,597	95.6%	0.08	CX
30	SKU-049Fryer thermostat (site B)	1,504	$14.83	$22,304	96.2%	0.10	CX
31	SKU-047Trash liners 40-45 gal (site B)	4,264	$4.30	$18,335	96.7%	0.09	CX
32	SKU-038Tipo 00 flour 50 lb (site B)	189	$89.86	$16,984	97.1%	1.34	CZ
33	SKU-026Oat milk 12 x 32 oz	415	$36.99	$15,351	97.5%	0.10	CX
34	SKU-028Avocados 48 ct	160	$85.84	$13,734	97.9%	1.50	CZ
35	SKU-024Microgreens 1 lb	1,058	$8.71	$9,215	98.1%	0.09	CX
36	SKU-015To-go clamshell 9 in	851	$8.99	$7,650	98.3%	0.71	CY
37	SKU-003Salmon fillet 10 lb	60	$127.32	$7,639	98.5%	0.12	CX
38	SKU-014Quat sanitizer 1 gal x 4	568	$12.49	$7,094	98.7%	1.39	CZ
39	SKU-057Lemons 115 ct (site B)	33	$182.13	$6,010	98.8%	0.66	CY
40	SKU-033Salmon fillet 10 lb (site B)	145	$37.41	$5,424	99%	2.26	CZ
41	SKU-035Romaine hearts 24 ct (site B)	71	$65.91	$4,680	99.1%	1.37	CZ
42	SKU-001Chicken breast 40 lb	47	$90.82	$4,269	99.2%	0.68	CY
43	SKU-019Fryer thermostat	480	$8.19	$3,931	99.3%	0.06	CX
44	SKU-039Olive oil 3 L (site B)	316	$12.31	$3,890	99.4%	0.07	CX
45	SKU-029Eggs 15 dz	385	$10.03	$3,862	99.5%	0.67	CY
46	SKU-046Paper towel rolls (site B)	13	$168.70	$2,193	99.6%	1.50	CZ
47	SKU-040Jasmine rice 50 lb (site B)	12	$181.42	$2,177	99.6%	0.00	CX
48	SKU-056Oat milk 12 x 32 oz (site B)	24	$88.52	$2,124	99.7%	0.00	CX
49	SKU-020Walk-in door gasket	11	$177.68	$1,954	99.7%	0.87	CY
50	SKU-023Truffle oil 250 ml	12	$158.15	$1,898	99.8%	0.00	CX
51	SKU-017Trash liners 40-45 gal	11	$159.78	$1,758	99.8%	1.50	CZ
52	SKU-060Butter 36 x 1 lb (site B)	12	$139.20	$1,670	99.9%	0.00	CX
53	SKU-042Heavy cream 12 qt (site B)	12	$99.60	$1,195	99.9%	1.21	CZ
54	SKU-018Dish detergent 5 gal	14	$63.92	$895	99.9%	1.86	CZ
55	SKU-058Avocados 48 ct (site B)	12	$67.59	$811	99.9%	0.00	CX
56	SKU-004Fryer oil 35 lb	45	$16.08	$724	100%	1.08	CZ
57	SKU-037Crushed tomatoes #10 x 6 (site B)	11	$54.27	$597	100%	0.87	CY
58	SKU-045To-go clamshell 9 in (site B)	47	$8.05	$378	100%	0.68	CY
59	SKU-051Ice machine filter (site B)	6	$28.22	$169	100%	2.49	CZ
60	SKU-013Nitrile gloves L	12	$6.37	$76	100%	0.00	CX

60 SKUs · one site · one year

Classifying SKUs is the easy part. The value comes from running a different ordering policy for each class, at every site.

Bollard reclassifies each site’s catalog from live usage and applies class-specific reorder rules automatically: tight control for AX items, min/max for C items, and order-on-demand for CZ items.

See class-based reordering in Bollard

Method

How SKUs are classified

ABC: each SKU’s annual value is usage × unit cost. SKUs are ranked by value; a SKU is A if the cumulative value before it is under the A cut-off, B if under the B cut-off, and C otherwise.

XYZ: the coefficient of variation of monthly usage. CV up to the X limit is steady, up to the Y limit is variable, and above it is erratic. A SKU with no usage in a month counts as zero for that month.

Each of the nine classes comes with a recommended policy, from continuous review with lean buffers for AX items to order-on-demand or removal for CZ items.

Read the guide: ABC-XYZ analysis: which items deserve your attention, and how to stock each one

From one site to every site

Classes change as usage changes, and each site has different A items.

Bollard classifies every site’s catalog from live usage and applies class-specific replenishment rules automatically, so buyers spend their time on high-value items rather than the long tail.

ABC-XYZ classification per site, kept current
Reorder rules by class
Slow-moving and erratic items flagged for review
Network-wide view of where value sits

See Bollard in action

Questions

Frequently asked

What is ABC analysis?+

A way of ranking inventory by annual consumption value (usage × unit cost). A items are the few SKUs that make up most of the value, typically the top 80 percent; B items the next 15 percent; C items the long tail. It follows the Pareto principle: a small share of items accounts for most of the spend.

What does XYZ add?+

XYZ grades how predictable demand is, using the coefficient of variation (standard deviation ÷ mean) of monthly usage. X items are steady, Y items vary (often seasonally), and Z items are erratic. Combining the two gives nine classes, each suited to a different stocking policy.

What cut-offs should I use?+

The usual defaults are A up to 80 percent of cumulative value and B up to 95 percent, with X for a CV up to 0.5 and Y up to 1.0. Adjust them to your catalog. The sliders update the classes, curve and matrix instantly.

How many months of data do I need?+

ABC works with annual usage alone. XYZ needs monthly usage. Twelve months captures seasonality, and at least six is recommended. Columns other than sku, description, unit_cost and annual_qty are treated as months.

Should every site use the same classification?+

No. An item can be an A at a busy site and a C at a small one. Classify each site separately before setting reorder rules.

Is my data uploaded?+

No. The classification runs in your browser and the CSV is generated on your device.

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