An integrated model for solving the multiple criteria ABC inventory classification problem

Subject Areas : Statistics

M. Aghashahi ¹ (Department of Mathematics, Aghigh Institute of Higher Education, Shahin Shahr, Isfahan, Iran)
A. Hadi-Vencheh ² (Department of Mathematics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran *Corresponding author)

Received: 2015-04-14 Accepted : 2015-12-16 Published : 2015-08-23

Keywords: مسئله طبقه بندی ABC چند معیاره, برنامه ریزی خطی, کنترل موجودی,

Abstract :

In this paper, we present an integrated version of the Ng model and Zhou and Fan model [W. L. Ng,A simple classifier for multiple criteria ABC analysis, European Journal of Operation Research, 177(2007) 344-353; P. Zhou & L. Fan, A note on multi-criteria ABC inventory classification usingweighted linear optimization, European Journal of Operation Research, 182 (2007) 1488-1491]. Themodel that Ng [1] offered, hereafter called the Ng-model, in spite of its advantages may lead to asituation in which the weights of some criteria in relation to an item would not play any role indetermining overall score that item. Also, the scale transformation that he applied for transforming themeasures of items under criteria into interval 0-1 is not suitable for the small-scale measures. On theother hand, for the R inventory item, the Zhou and Fan model [2], hereafter called the ZF-model,should be solved through a linear optimizer 2R times in which an inventory manager might has no anybackground in regard with optimizer. Furthermore, when number of items is large, the computingtime would increase. Therefore, in order to remove drawbacks of both the approaches, an integratedmodel is presented in which objective functions are the same ZF-method but its constraints is similarto Ng model. At last, results obtained from applying the proposed model in an illustrative example arecompared with Ng and ZF-models.

References:

[1] W.L. Ng, A simple classifier for multiple criteria ABC analysis, European Journal of Operational Research 177 (2007) 344-353.

[2] P. Zhou, L. Fan, A note on multicriteria ABC inventory classification using weighted linear optimization, European Journal of Operational Research 182 (2007) 1488-1491.

[3] R. Ramanathan, ABC inventory classification with multiple-criteria using weight linear optimization, Computer and Operations Research 33(3) (2006) 695-700.

[4] B.E. Flores, D.L. Olson, V.K. Dorai, Management of multicriteria inventory classification, Mathematical and Computer Modelling 16 (1992) 71–82.