Unfortunately, the study also has some weaknesses:

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Conducting an assessment is available to everyone. To conduct an ABC analysis, you do not need professional training or a paid application for calculations. A couple of hours and a table are enough;
the method has no error. Due to the simple calculation formula, the risk of error is minimal;
the method is adapted to the category. ABC analysis is a universal solution. It can be used to analyze any product, service, and other business indicators.

the method does not guarantee payback. The study estimates bolivia whatsapp phone number revenue without taking into account cost and other associated expenses;
only one parameter is examined. There is no possibility to comprehensively evaluate the product according to different indicators;
The method does not take seasonality into account. Without analyzing the level of demand for XYZ, the results of the study do not reflect the frequency of purchase.


Combined ABC-XYZ Analysis: What is it?
To make correct conclusions about the profitability of products, the results of ABC analysis are combined with the results of XYZ analysis of the level of demand. The XYZ method determines the level of demand fluctuations using a formula that is not so easy to understand - the square coefficient of variation. Using the standard deviation and data on average monthly income, you can find out how much revenue varies over the selected period.

Items with a variation coefficient of less than 10% are products with stable demand. They are assigned to group X ;
Group Y products have a value in the range of 10-25%. They are relatively stable: demand varies, but without dramatic jumps;
Unstable positions of group Z are rarely bought and are called seasonal.
The combined XYZ and ABC analysis matrix provides a complete picture of profitability and helps to understand which products are the core of the product range and business.



Conclusion
The division into categories A, B and C is a quick and convenient tool for inventory management. It allows you to understand why sales or profits are falling and improve business efficiency. ABC analysis combined with XYZ analysis helps to identify key priorities and focus on consistently purchased goods. The results of the study will facilitate procurement planning, help reduce costs and improve the company's competitiveness.