Authors: John Solomon Jatta; Krishna Kumar Krishnan
Addresses: Wichita State University, 1845 Fairmount Street, Wichita, Kansas 67260, USA ' Wichita State University, 1845 Fairmount Street, Wichita, Kansas 67260, USA
Abstract: Inventory performance is typically based on individual SKU rather than on class of SKUs. This research evaluates ABC inventory classes for performance based on class inventory turn. Multiple multi-criteria inventory control (MCIC) models are used to classify 47 stock-keeping units into A, B, and C categories and their ABC classes' annual performance evaluated for each model. The results show that A-class consistently has highest turns than B and C classes. For the eight models evaluated all but the R-model show higher turns for A class than both B or C class. B and C classes turn inventory relatively the same number of times with the exception of the R-model. The R-model turns C-class inventory higher than A-class or B-class inventory contrary to ABC principles. The results show that inventory classification can be limited to A and B classes instead of the numerous classes sometimes recommended and practiced in many firms.
Keywords: multi-criteria; inventory turn; inventory days on hands; IDOHs; ABC classification; inventory class performance; multi-criteria inventory control; MCIC.
International Journal of Inventory Research, 2017 Vol.4 No.1, pp.61 - 74
Received: 01 Aug 2016
Accepted: 06 Dec 2016
Published online: 03 Jul 2017 *