Abstract—The ABC-XYZ analysis is widespread in modern Y Z

business, especially in the inventory control, marketing and

logistics. It is used for classification of the assortment
depending on the revenue or profit of sales of the enterprise
according to the ABC-part of the method and the amount of
sales for the XYZ-part. The paper proposes a modification of
the ABC-XYZ analytical technique for the case of the presence
outliers in the data. The modification of the method allows
identification of the outlier by means of the Grubbs’ test. After
excluding the outliers, the mean and the standard deviation of
the truncated sample are used to re-estimate average sales,
recalculate revenue and coefficient of variation, regroup and
finally help decrease costs by means of better forecasting and
changing strategies of inventory management, e.g. choosing
more appropriate replenishment systems for products and
avoiding bullwhip effect in a supply chain. The new technique
was applied to a simulating data set and demonstrated the Ri i N
results of classification that differ from the classical one. The N
suggested method must be considered as a preferable i N i
technique for classification as it is based on more reliable and
accurate data and robust estimation of mean value and
standard deviation.

Keywords: ABC-XYZ analysis, robust estimation, Grubbs’ Ri

di
test, outlier, truncated sample mean, truncated sample standard N
deviation. Ri
i

i N

Si Si-1+ di,

Si A
Si B
Si C

A
B S
CV
C X

X
 N
X Xi
N i Product
Revenue Ri , Conclusion
name c.m.u. for the
di Si ABC
period
X X X XN
N

N
S Xi X
N i

CV X
Total
CV Y revenue
2 296 796

CV Z

A B
C

X
Y
Z

Sales, items per month

Price,
Product
c.m.u X , items per S, items Conclusion
name Product CV
per item Jan. Feb. Mar. Apr. May June July
month per month XYZ
name
 t
Conclusion Conclusion N N
Product N
name
ABC XYZ G G
N N t
N
N

H t
N N
N
t N

Two
X S
G

N t
N
N
G
AX BX
CX AZ Two
CY CZ CZ
Nine H X

N
ai X N i Xi
Two AZ i
W
N
Xi X
Two i
X N
X X X N

ai i N
H X
p

p
H X

Two
X
X X
G
S

X X XN
 X

Two

RTwo = X =

RTwo
RTwo =

Two
B
A
Two
Two

N N
S
X X i CV
N N i N X

X X X N X

N N N
N
S X i X
N N i N
N
X Xi
N i

Recalculated
Product Conclusion
name
revenue R , c.m.u.
i
di Si new ABC
for the period

Total
revenue
2 032 646
without
outlier
 Two
X Two
Nine X Nine

G
N Two
S Xi X B
N i Y AZ
Nine
S
CV Two X
N
BX
G X Two
Two X Nine Two
G High
Nine
A G Low X Two
X Nine

Four A B Two p
Nine p

Two
Two BY BX Nine
CZ CX
Two
A

Ri , c.m.u. Concl Concl

Product G High
name
usion usion G Low
for the period ABC XYZ

X X
G
S

X X XN

X S

Total
revenue with
two outliers
 Ri , c.m.u. for the Conclusion Conclusion
Product name
period ABC XYZ

Total revenue
without two
outliers