What is ABC/XYZ classification in SAP (SCM-APO-FCS - Demand Planning)?

SAP Term: ABC/XYZ classification

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: The classes assigned to a planning object during ABC/XYZ analysis.

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• Key Concepts: 
  ABC/XYZ classification is a method used in SAP's SCM-APO-FCS Demand Planning component to classify products into different categories. This classification is based on the characteristics of the product, such as size, weight, and other attributes. The ABC/XYZ classification helps to identify which products are most important to the business and should be given priority in terms of resources and attention. 
  
  How to use it: 
  The ABC/XYZ classification can be used to prioritize resources and attention for different products. For example, products that are classified as “A” may be given more resources and attention than those classified as “B” or “C”. This helps to ensure that the most important products are given the most attention and resources. 
  
  Tips & Tricks: 
  When using the ABC/XYZ classification, it is important to consider all of the characteristics of a product when assigning it a category. This will help ensure that the most important products are given the most attention and resources. Additionally, it is important to regularly review and update the ABC/XYZ classification as needed in order to ensure that it is up-to-date and accurate. 
  
  Related Information: 
  The ABC/XYZ classification is similar to other methods of product classification, such as SKU-based or customer segmentation-based classifications. Additionally, this method can be used in conjunction with other methods of product classification in order to provide a more comprehensive view of a product's importance.