WarehouseOps editorial · Updated 20 September 2026
Use comparable periods
Paste a SKU, unit cost and at least three matching periods of demand per row. A blank demand cell is missing information; a zero is measured no demand. Do not mix three periods for one item and twelve for another.
Worked example
Two items have period consumption values ₹9,900 and ₹100. The first accounts for 99% of value. Under the start-of-item convention, it starts at 0% cumulative value and remains A. The second starts at 99% and is C. There may be no B item in a small set.
Understand XYZ
Coefficient of variation is sample standard deviation divided by mean. This implementation labels CV below 0.5 as X, 0.5 through 1 as Y, and above 1 as Z. These are configurable policy choices in concept, not universal standards. Short histories and seasonality limit interpretation.
Add a policy review
Tie the class to a proposed review frequency, then adjust for criticality, expiry, supplier risk and customer commitments. High variability is not itself a reason to discontinue a necessary item.