A note on multi-criteria ABC inventory classification using weighted linear optimization. (English) Zbl 1127.90005
Summary: R. Ramanathan [Comput. Oper. Res. 33, No. 3, 695–700 (2006; Zbl 1077.90008)] recently proposed a weighted linear optimization model for multi-criteria ABC inventory classification. Despite its many advantages, Ramanathan’s model (R-model) could lead to a situation where an item with a high value in an unimportant criterion is inappropriately classified as a class A item. In this paper we present an extended version of the R-model for multi-criteria inventory classification. Our model provides a more reasonable and encompassing index since it uses two sets of weights that are most favourable and least favourable for each item. An illustrative example is presented to compare our model and the R-model.
MSC:
| 90B05 | Inventory, storage, reservoirs |
| 90B50 | Management decision making, including multiple objectives |
Citations:
Zbl 1077.90008References:
| [1] | Ramanathan, R., ABC inventory classification with multiple-criteria using weighted linear optimization, Computers & Operations Research, 33, 695-700 (2006) · Zbl 1077.90008 |
| [2] | Ng, W. L., A simple classifier for multiple criteria ABC analysis, European Journal of Operational Research, 177, 344-353 (2007) · Zbl 1111.90010 |
| [3] | Ramanathan, R., An Introduction to Data Envelopment Analysis: A Tool for Performance Measurement (2003), Sage Publications: Sage Publications New Delhi |
| [4] | Cooper, W. W.; Seiford, L. M.; Tone, T., Introduction to Data Envelopment Analysis and Its Uses: With DEA-Solver Software and References (2006), Springer: Springer New York |
| [5] | Triantaphyllou, E., Multi-criteria Decision Making Methods: A Comparative Study (2000), Kluwer Academic Publishers: Kluwer Academic Publishers Boston · Zbl 0980.90032 |
| [6] | Belton, V.; Stewart, T., Multiple Criteria Decision Analysis: An Integrated Approach (2001), Kluwer Academic Publishers: Kluwer Academic Publishers Boston |
| [7] | Flores, B. E.; Olson, D. L.; Dorai, V. K., Management of multicriteria inventory classification, Mathematical and Computer Modelling, 16, 71-82 (1992) · Zbl 0800.90388 |
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