# HML ANALYSIS & XYZ ANALYSIS

#### sunandaC

##### New member
HML ANALYSIS

H-M-L analysis is similar to ABC analysis except the difference that instead of “Annual Inventory Turnover”, cost per unit criterion is used .

The items under this analysis are classified based on their unit prices . They are categorized in three groups , which are as follows

H-High Price Items

M-Medium Price Items

L-Low Price Items

Objectives of hml analysis

Determine the frequency of stock verification

To keep control over the consumption at the department level

To evolve buying policy, to control purchase

To delegate the authority to different buyer

Determine the frequency of stock verification

To keep control over the consumption at the department level

To evolve buying policy, to control purchase

To delegate the authority to different buyer

XYZ ANALYSIS

XYZ analysis has a correlation with ABC analysis, only the difference is that instead of annual consumption and price per unit , the inventory value is considered. Usually XYZ analysis is used in conjunction with either ABC analysis or HML analysis.

XYZ analysis is based on value of stock on hand (i.e- inventory investment ). Items whose inventory values are high are called X items , while those whose inventory values are low are called Z items and Y items are those which have moderate inventory stock . This can also be shown as below :-

X- high inventory value

Y-moderate inventory value

Z -low inventory value

##### New member
HML Analysis are used for stock verification, Nice and valuable structure to verify and validate. HML are also quite effective to maintain records and keeps on updating on a regular intervals. These allows creamy functions.

#### jitendra05

##### Banned
HML ANALYSIS

H-M-L analysis is similar to ABC analysis except the difference that instead of “Annual Inventory Turnover”, cost per unit criterion is used .

The items under this analysis are classified based on their unit prices . They are categorized in three groups , which are as follows

H-High Price Items

M-Medium Price Items

L-Low Price Items

Objectives of hml analysis

Determine the frequency of stock verification

To keep control over the consumption at the department level

To evolve buying policy, to control purchase

To delegate the authority to different buyer

Determine the frequency of stock verification

To keep control over the consumption at the department level

To evolve buying policy, to control purchase

To delegate the authority to different buyer

XYZ ANALYSIS

XYZ analysis has a correlation with ABC analysis, only the difference is that instead of annual consumption and price per unit , the inventory value is considered. Usually XYZ analysis is used in conjunction with either ABC analysis or HML analysis.

XYZ analysis is based on value of stock on hand (i.e- inventory investment ). Items whose inventory values are high are called X items , while those whose inventory values are low are called Z items and Y items are those which have moderate inventory stock . This can also be shown as below :-

X- high inventory value

Y-moderate inventory value

Z -low inventory value

Hey sunanda, thanks for sharing the information on such an essential topic. As we know that these four analysis is the types of inventory control system. Well, i am also sharing a document for giving more detailed information.

#### Attachments

• HML ANALYSIS & XYZ ANALYSIS.pdf
84.9 KB · Views: 5

#### Sachin Choudhary

##### New member
HML inventory analysis is a system for classifying inventory based on its usage or consumption rate. Items that are used more often are classified as H (high) items, followed by M (medium) items, then L (low) items. The goal of HML inventory analysis is to ensure that the most popular items are always in stock.