Yes, we can support the ABC/XYZ classification of your items.
ABC analysis classifies SKUs by importance (e.g., A = 20% of products representing 80% of the value), while XYZ analysis classifies them according to demand regularity (e.g., X = regular demand, Z = highly fluctuating demand). Combining the two (9-box matrix) yields categories such as AX (critical products, stable demand) or CZ (low-value products, erratic demand).
For example, apply finer replenishment frequencies to A items with stable demand, and more agile methods for highly volatile C items. In practice, our calculation engine uses a lot of data (value, variability, lead times, etc.) to automatically prioritize SKUs, which amounts to dynamic classification.
We also provide reports that highlight items by class, so you can fine-tune your parameters (higher target service level for A, etc.). This approach helps you "prioritize resources, optimize inventory levels, and improve forecast accuracy" for each product category.
In short, Flowlity integrates ABC/XYZ principles into optimization to treat strategic and less critical products differently, for better overall inventory control.