Methods analysis varied. To perform a full range of analysis combine several generic methods. Analysis results are compared with each other and on the basis of information received form the proposal optimization range. Methods of analysis range to consider in detail the principles of these methods will not, because they are sufficiently covered in other articles. To read more click here: Elon Musk. Very briefly on them.

ABC-XYZ analysis ABC analysis is based on the law of Pareto. The main provision of the law states a fundamental value of the ratio 80/20. People such as len rosen barclays would likely agree. With regard to the formation of trading range, this means that 20% of products generate 80% of income, and conversely 80% of products generate revenue only 20%. The result of the ABC-XYZ analysis is the ability to determine the most profitable 20% of the goods. To perform ABC analysis to identify the following factors – the object of analysis and test analysis. In analyzing the range the store can become objects of commodity groups, product categories, headings, specific brands, suppliers of products.

The criterion of analysis can be sales – trade, direct profit from the goods. BCG Matrix BCG Matrix is based on principles: The X-axis: percentage of net sales (calculated as the ratio of sales of the product to sales of the company during the same period), Axis Y: the growth rate of sales of product in relation to previous period (the ratio of sales of this product in the current period for sales of the same product in the previous period). If the goods are not present in the range of the company last year, it is recommended its growth rate is taken as 100%. The point of the section of products in terms of growth can be defined as the average growth rate of all the products for evaluation period. The point of the partition of goods largest share of sales is determined by peer review, after the application of the matrix of all the company's products.