Title: Multi-criteria inventory classification approach to inventory control based on maximum value criteria normalisation method: a weightless perspective

Authors: John Jatta; Krishna K. Krishnan

Addresses: Department of Industrial and Manufacturing Engineering, Wichita State University, Wichita, KS, USA ' Department of Industrial and Manufacturing Engineering, Wichita State University, Wichita, KS, USA

Abstract: Effective inventory management is crucial to responsive supply chains. ABC inventory classification is an effective approach to stratifying stock-keeping units, according to classes based on a single criterion or multiple criteria. In this paper, we proposed an equal-weight, rapidly deployable model for inventory classification based on simple criteria transformation, which is a linear transformation of the criteria values. The model is quick and easy to develop and effective in classifying inventory. A pairwise correlation comparison shows the proposed model to be significantly positively correlated with most of the existing models compared. The proposed model also shows better performance, in terms of hits, than most of the models compared. This research also provides practitioners and managers with a model substitutability table by comparing model correlation or class hits.

Keywords: ABC inventory classification; equal weight; correlation; multicriteria inventory classification; inventory control; maximum value criteria normalisation; inventory management; supply chain management; SCM.

DOI: 10.1504/IJSCIM.2016.081828

International Journal of Supply Chain and Inventory Management, 2016 Vol.1 No.4, pp.342 - 360

Received: 16 Mar 2016
Accepted: 06 Oct 2016
Published online: 26 Jan 2017 *

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