Opportunities for Classifying the Material Stocks by Two Criteria Cover Image

Възможности за класифициране на номенклатурата на стоково-материалните запаси по два критерия
Opportunities for Classifying the Material Stocks by Two Criteria

Author(s): Tanka Milkova
Subject(s): Economy, Transport / Logistics
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: inventory management; ABC analysis; XYZ analysis
Summary/Abstract: One of the key factors for ensuring the achievement of business aims is related to the proper inventory management in the logistics system. Before moving on to the selection of appropriate methods for optimal management of each specific stock type, it is necessary to classify the whole nomenclature in order of importance according to certain criteria, most often using the methods of analysis ABC and XYZ. The application of these methods involves the usage of classification criteria for total value of stocks or the ability to forecast stock needs accurately. This report puts a stress on the possibility and benefits of applying a classification method using two significant criteria – stock value and delivery time for the next batch of stocks.