ABC/XYZ Analysis (2024)

Each of the above groups should be treated differently in forecasting. The system must use a different forecast profile for a planning object with little value and high volatility (CZ), than a planning object with high value and low volatility (AX). The system selects the best forecast profile for each class based on the following process:

You assign two planning levels to the planning area you use for ABC/XYZ classification, one planning level for ABC classification, and one for XYZ classification. The planning level of ABC classification can be an aggregated level compared to the planning level used for XYZ classification.
In Customizing for Advanced Planning and Optimization, under Supply Chain Planning Demand Planning (DP) Basic Settings ABC/XYZ Classification Specify Planning Levels for ABC/XYZ Classification , you assign planning levels to the planning area you want to work with. You can specify planning levels in Customizing for Advanced Planning and Optimization, under Supply Chain Planning Demand Planning (DP) Basic Settings Specify Planning Levels .

Caution
See Also
What is ABC Analysis & how it is used in inventory management How to Calculate ABC Classification for Inventory - An Example How to graph XYZ data in 3D inside Microsoft Excel | Gray Technical, LLC Columns and rows are labeled numerically - Microsoft 365 Apps
You cannot assign navigation attributes to the planning levels that you want to use in ABC/XYZ classification.

End of the caution.
You create an ABC analysis profile for classifying your planning objects into A, B, and C classes.
You can do this on the SAP Easy Access screen, under Advanced Planning and Optimization Demand Planning Environment Demand Planning Worklist , in the ABC Analysis Profiles queries. For more information, see Configuration Settings for ABC/XYZ Classification.
You create an XYZ analysis profile for classifying your planning objects into X, Y, and Z classes.
See Also
From ABC to XYZ: Understanding the XYZ Analysis
You can do this on the SAP Easy Access screen, under Advanced Planning and Optimization Demand Planning Environment Demand Planning Worklist , in the XYZ Analysis Profiles queries. For more information, see Configuration Settings for ABC/XYZ Classification.
After you have specified the criteria based on which the system should segment your planning objects into A, B, C, and X, Y, and Z classes, you define the classification profile, which contains both the ABC and the XYZ analysis profiles, as well as the composite forecast profiles you want the system to use for each class combination.
You create classification profiles on the SAP Easy Access, under Advanced Planning and Optimization Demand Planning Environment Demand Planning Worklist , in the Classification Profiles queries.

You create composite forecast profiles on the SAP Easy Access screen, under Demand Planning Environment Maintain Forecast Profiles , on the Composite Forecast Profiles tab page. For more information, see Creating a Composite Forecast Profile.

You then assign a composite forecast profile that contains forecast profiles that best match the combination of ABC and XYZ classes to each class combination. You can do this on the SAP Easy Access screen, under Advanced Planning and Optimization Demand Planning Environment Demand Planning Worklist , in the All Classification Profiles queries. For more information, see Configuration Settings for ABC/XYZ Classification.
You run the ABC/XYZ Classification and Forecast Optimization report.
For more information, see ABC/XYZ Classification and Forecast Optimization.
You display the classification results, and change them, if necessary.
On the SAP Easy Access screen, choose Advanced Planning and Optimization Demand Planning Environment Display ABC/XYZ Classification Results . For more information, see ABC/XYZ Classification Result Display.
You can display the planning objects that belong to the different classes in interactive demand planning, by specifying the XYZ planning level in the Show field of the selection window, and selecting the class you want to display.

You can also save the selections you create using the different classes and use them in other applications, for example in forecasting, or the Automatic Outlier Detection and Event Generation report.