XYZ Inventory Management in BOARD
I want to use BOARD to classify my Products based on the variability of their demand, i.e. X Products = Stable demand, Y Products = Variable demand, Z Products = Random demand. After calculating the groupings I might use the information to optimise where and how I hold the inventory in my distribution centre. I have sales data by Product and Month.
I have used Nexel to calculate the Standard Deviation for the entire population (STDEVP function), together with the Average of the Months.
Allow Write Inplace is enabled:
An algorithm divides one result by the other (STDEVP/Average) to calculate the Coefficient of Variation %:
I have a cube to hold the thresholds for the X, Y, Z groupings:
A procedure is executed to test each Product’s Coefficient of Variation to assign it to the correct group based on the Thresholds entered in the previous step.
I can now report on my results:
DB and Capsule attached - built using v10.1.4