Application of combined ABC/XYZ analysis to improve inventory management efficiency at a metal structures plant

Abstract

Inventory management is a critical task for enterprises and organizations across all economic sectors. In the retail and trade sector, it is essential for striking a balance between product shortages and surpluses. In agriculture, it ensures that seasonal operations are completed within strict timeframes despite high levels of uncertainty (such as weather conditions and biological factors). In manufacturing, it guarantees continuous production at minimal cost. However, effective management is impossible without the proper classification and analysis of inventory. The article examines the implementation of combined ABC/XYZ analysis at a large plant manufacturing steel bridge structures, set against the backdrop of a sectoral decline in demand during the first quarter of 2025. The author proposes a two-level inventory management matrix integrated into the “1C:ERP” system, featuring strictly defined safety stock standards for each of the nine product categories. Calculations confirm the effectiveness of this combined ABC/XYZ analysis, demonstrating a reduction in the inventory turnover period and the release of working capital.