ABC/XYZ segmentation in SAP IBP is a demand planning tool to classify products based on value (ABC, e.g., revenue contribution) and demand variability (XYZ, e.g., forecast accuracy). It’s used to prioritize planning efforts and optimize inventory.
Option A: Substitute missing values in case of sporadic demandsThis is incorrect. ABC/XYZ segmentation classifies products but doesn’t inherently substitute missing values. Sporadic demand handling is managed by demand sensing or specific forecast models, not segmentation itself.
Option B: Choose time-independent key figures as segmentation measuresThis is correct. In SAP IBP, segmentation measures (e.g., sales value for ABC, coefficient of variation for XYZ) can be time-independent key figures (e.g., total annual revenue, average variability). These are configured in the ABC/XYZ Segmentation app, allowing static or dynamic analysis, as per SAP’s demand planning documentation.
Option C: Identify inventory items that require closer attentionThis is correct. ABC classifies high-value items (A) versus low-value (C), while XYZ identifies stable (X) versus erratic (Z) demand. Combining them (e.g., AX = high-value, stable) highlights items needing focus (e.g., AZ = high-value, erratic), aiding inventory and planning prioritization—a core feature of SAP IBP segmentation.
Option D: Use forecasting algorithms that are specific to seasonal demands of SKUs in the segment "B"This is incorrect. ABC/XYZ segmentation doesn’t directly dictate forecasting algorithms or tie them to specific segments like "B" (moderate value). Forecast models (e.g., seasonalARIMA) are configured separately in demand planning, not as a segmentation output.
Thus, B and C reflect SAP IBP’s ABC/XYZ segmentation capabilities per official documentation.
