Management of multicriteria inventory classification
- Resource Type
- Authors
- David L. Olson; V. K. Dorai; Benito E. Flores
- Source
- Mathematical and Computer Modelling. 16(12):71-82
- Subject
- Inventory control
ABC analysis
Measure (data warehouse)
Ranking
Operations research
Computer science
Modeling and Simulation
Modelling and Simulation
Control (management)
Univariate
Analytic hierarchy process
Lead time
Computer Science Applications
- Language
- ISSN
- 0895-7177
The most common method that materials managers use for classifying inventory items for planning and control purposes is the annual-dollar-usage ranking method (ABC classification). Recently, it has been suggested that multiple criteria ABC classification can provide a more comprehensive managerial approach, allowing consideration of other criteria such as lead time and criticality. This paper proposes the use of the Analytical Hierarchy Process (AHP) to reduce these multiple criteria to a univariate and consistent measure to consider multiple inventory management objectives.