Don't use ABC XYZ to set inventory targets.
(Why would you ever need to do this anyway?)

To set the right inventory policy, you need to take into account,
- Service level objectives
- Forecasting accuracy
- Supply reliability
- Lead times
- Seasonality

There is no way you can segment your products into nine meaningful classes that cover the cases above.

But also, why would you ever need to do this if you can enjoy an automated engine that will pick the best policies for you?
Here's how I would do it,

A - Set service-level objectives for your products (based on risks - such as long lead times or perishability - and profitability). You could use some ABC-XYZ segmentation here, but it might not be optimal.

B - Use an inventory optimization engine to assess the optimal policy that will deliver this service level objective with the lowest possible cost or inventory levels.
This engine needs to be 100% automated. I would advise using simulations running on actual historical data to assess the best policy (instead of relying on mathematical formulas or theoretical simulations).

Using ABC XYZ classification for inventory targets would be like using ABC XYZ to determine your forecasts. Make no sense.

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