XYZ Inventory Management in BOARD

Document created by phil Employee on Jun 27, 2018Last modified by phil Employee on Jun 27, 2018
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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

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