XYZ Analysis


XYZ analysis is one of the basic supply chain techniques, often used to determine the inventory valuation inside a store. It is also strategic as it intends to enable the Inventory Manager to exercise maximum control over the highest stocked item, in terms of stock value.

A system of categorization, with similarities to Pareto analysis, XYZ analysis usually categorizes inventory into three bands with each band having a different management control associated. Although different criteria may be applied to each category the typical method of “scoring” an inventory item is that of annual stock value of said item (qty in stock X cost of item) with the result then ranked and then scored (X, Y or Z).

Bandings may be specific to the industry but typically follow a 70%, 90%, 100% banding in that X class items represent 70% of the stock value (although they may account for 20% number-wise), Y class items fall between 70% and 90% of the annual stock value with C class becoming the remaining. In practical terms, the complex high cost materials typically fall into the X class items, with the consumable, low cost (and typically fast-moving) designated as X class.

Not all stock is equally valuable and therefore doesn’t require the same management focus. The results of the XYZ analysis provide information that helps evaluate how each inventory part should be monitored and controlled.

These controls are typically:
X class items which are critically important and require close monitoring and tight control – while this may account for large value these will typically comprise a small percentage of the overall inventory count controls and periodic reviews of usage.

Z class require the least controls, are sometimes issues as “free stock” or forward holding.

Classification of inventory in terms of XYZ is also quite strategic as it can form the basis of various activity including leading plans on alternative stocking arrangements (consignment stock), reorder calculations and can help determine at what intervals inventory checks are carried out (for example, X class items may be required to be checked more frequently than Z class stores).

To help further in your inventory management needs, take a free trial of the best inventory/accounting package available today: SIMMS 2017. Here’s a free trial version for you:


Master Your Inventory with SIMMS 2017


As a software solution with over more than 20 years of improvements and innovations, SIMMS 2017 leads the world in feature-rich success in the accounting/inventory range of the software market. SIMMS grows by leaps and bounds based upon the needs of its users as well as the standards of sound and professional record-keeping. With SIMMS, you gain advantage from the following features:

Barcoding – Assign barcodes to items and use scanners for faster data entry and fewer mistakes.

Bills of Materials – Automatically assemble finished products from raw materials and have SIMMS update the inventory accordingly.

Central Database – Keep updated detailed listings of your products, vendors, customers and transactions.

Complete History – Never lose track of any item ever again. Know where everything was and where it will be.

Custom Documents – More than just a logo and colors, completely change the format and structure of any document.

Customizable Reports – Use customizable reports to calculate detailed information like your total sales, total taxes, best-selling products, products on back order, and how long your inventory will last.

Multiple Currencies – Buy and sell in different currencies, and set your own exchange rates.

Multiple Locations – Organize your items by locations, and even sub-locations, to track aisle and bin numbers.

One-click Workflow – Take orders, manage returns, and deduct inventory with one click.

Print or Email Documents – Instantly generate branded invoices, receipts, pick lists, packing slips, box labels and more.

Purchase Orders – Ensure accuracy by printing or emailing purchase orders with both your own product codes and your vendor’s product codes.

Reorder Stock – Use the Re-order Stock button to automatically generate purchase orders for your products that are low in stock.

Units of Measurement – User multiple units of measurement, e.g., buy by the case, track inventory by the piece, and sell by the dozen.

Additional SIMMS features include:

– Bulk Price Updates

– Due Dates

– Product Categories

– Reorder Point and Quantity

– Serial Numbers

– Stock Adjustments

– Stock Count Sheets

– Transfer Stock

– Vendor Product Codes

– Work Orders

With SIMMS 2017, your inventory and accounting needs are answered while you also gain a comprehensive analytical advantage regarding your purchasing, sales and work processes.

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KCSI: Your Best Software Choice


At KCSI, we ascertain precisely what our clients need – effective and long-term solutions that promise outstanding value and quality. We do not handover your project to novice freelancers. At KCSI, we have a team of highly qualified and experienced developers who devote their best efforts to each and every job they handle. Through continuous communication with the client, our team makes sure that requirements are properly specified and understood. We follow agile mobile development strategies in order to ensure highest quality solution in the least possible time. Last but not the least, there is no limit to what we can do for you.

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Let KCSI Help You Decide Your Software Future

If your system of business management have weaknesses and slow-downs then it is definitely time to make a massive change. Getting to where you must make a decision to utilize an out-of-the-box package or to spring for a custom solution becomes of paramount importance. Whichever choice you make, the tool must be versatile, and both quick and easy. If any problem rises to the forefront, it has numerous factors that contribute to it. With each system — production, manpower, stock supply — monitored in parallel, shortcomings can be identified and remedied also in parallel, so that any changes made will not add to the detrimental weakness, no matter in which section it exists.

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The Best Stock Tracking Criteria

Once you’ve decided to implement software to make your stock management into a priority, there are many details you have to consider to select the correct one. Before you arrive at the decision, you must know the features that will be the bare minimum requirements. The following is a checklist of the most important features you must possess to gain complete control over the inventory process of your company:

  • ‘Find’ and ‘Filter’ tools to aid in item location
  • ‘Where used’ feature for parts usage
  • Accept partial and over-deliveries
  • All data contained in industry-standard relational database
  • Alternative suppliers for parts
  • Automatic fulfillment of production shortfalls from non-production orders
  • Automatically determines shortages for mix of products
  • Automatically replenish minimum stock levels
  • Bills of Materials and Stores picking lists
  • Configurable user interface
  • Context sensitive on-line help
  • Control of display and order of fields in forms
  • Create product costings (including labour costs)
  • Display and printout of product structure
  • Export parts lists, stock, suppliers and categories in CSV format
  • Fractional quantities with user-defined precision
  • Full ‘referential integrity’ of cross-references within the database
  • Full multi-user networking with user names and passwords
  • Import parts lists, stock, suppliers and categories in CSV format
  • Integral backup and restore
  • Paper and electronic Users Guide including tutorial
  • Partial ordering available for accurate scheduling
  • Point and click creation of multi-level part lists
  • Print bin labels
  • Print Requests for Quotations and Orders
  • Produce customizable reports using Report Builder
  • Produce Production and Non-Production orders
  • Produce scheduled orders
  • Product items fully traceable back to originating orders (for ISO audits)
  • Release individual products from jobs to production
  • Reports include ‘filters’ allowing selective reporting
  • Re-use previous production jobs as template for new ones
  • Select a variety of products for a production job and allocate stock
  • Show outstanding orders
  • Standard Windows® editing throughout
  • Store orders and assembly lists for future reference
  • Track Works-in-Progress (WIPs)
  • Trial kitting allows ‘what if’ analysis (phantom kitting)
  • Undo stock allocation and ‘return to shelf’ capability
  • User-definable item units
  • User-defined currency and precision (decimal places)
  • User-defined fields on stock items
  • User-defined shortcut keys

For a robust and comprehensive package that includes all of the above features and more, visit or email to learn more about SIMMS 2017 Accounting & Inventory Management software.

Banking with SIMMS 2017

While other software packages require users to master complex accounting procedures and manually implement them, SIMMS 2017 has been created using the input of accountants, whose suggestions and focus on the most important information have contributed to the easy and practical steps included in the initial setup of SIMMS. This way, none of the most important settings are missed and none of the data requested during the setup is left as something confusing to you. Entry of additional data takes place during the secondary steps of setup, enabling your use of SIMMS to realize which information is the most important.

Whether it’s the management of your various accounts, or the tracking of balances due and payment history from customers or vendors, details are easily entered or amended within the software. This feature-rich combination of top-level stock management and leading-edge accounting standards make SIMMS 2017  the leading choice for small- to medium-sized businesses everywhere for a seamless mastery of their banking needs.

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