What is the AX category of items of  Inventory ?


 

 

Inventory plays an important role for any organisation as it blocks the working capital which otherwise would have earned the organisation some money.

While the need for having inventory can't be denied for any running plant / machinery, its availability in controlled measures too is highly desirable. Control techniques such as ABC and XYZ analyses though done in different ways, try ,at the same time, to get maximum control with little commitment of resources.
 

One of the ways to have still better (tight) control over the inventory with still less commitment of resources is by determining the AX category of items in a given inventory. Once ABC and XYZ analyses have been done and a list of A and X classes of items are drawn then AX category is a combination of the two categories. Going by the definition of A and X separately , AX category of items , normally, display a high consumption (A) as well as a high stock value (X). Essentially, these items are high value , in terms of overall procurement cost including their being costly. Obviously , the measures that need to be taken to keep AX inventory under control is similar to that of A or X items, viz stock less number at any given time, have tight consumption control, more sources so that supply doesn't become a constraint when needed etc.    

 

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