Multi-criteria inventory classification problem in an electronic firm and its solution by AHP-TOPSIS-ABC integrated approach


ÇITAK S., ARIKAN ÖKTEMER F.

Joint International Symposium on "The Social Impacts of Developments in Information, Manufacturing and Service Systems" 44th International Conference on Computers and Industrial Engineering, CIE 2014 and 9th International Symposium on Intelligent Manufacturing and Service Systems, IMSS 2014, İstanbul, Türkiye, 14 - 16 Ekim 2014, ss.148-162 identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Basıldığı Şehir: İstanbul
  • Basıldığı Ülke: Türkiye
  • Sayfa Sayıları: ss.148-162
  • Anahtar Kelimeler: Inventory management, Multi-criteria decision making
  • Gazi Üniversitesi Adresli: Evet

Özet

Rapid changes on new technologies increase the competition in electronic telecommunication markets. Keeping up with this competition, efficient inventory classification is vital activity for electronic firms that work with huge amount of inventory items. Although one of the most widely used techniques in inventory classification is ABC analysis, it considers only a single criterion as the annual sales volume of each item. In practical point of view, non-homogeneity and the differences among the inventory items necessitate considering multiple criteria such as lead time, obsolescence, availability, substitutability, criticality, repair ability, commonality, certainty of supply, impact of stock-out, inventory cost, number of requests for the item in a year, scarcity, durability, order size requirement, stack ability, and demand distribution to obtain a reliable classification. In this study, an integrated Analytic Hierarchy Process (AHP)-The Technique for Order Preference by Similarity to Ideal Solution (TOPSIS)-ABC approach is performed to solve multiple criteria inventory classification problem in electronic firm. Criteria which affect the problem are determined by three purchasing experts and a production planning engineer who are experts in their field. AHP is employed to calculate the relative importance of criteria. After the establishment of full ranging with TOPSIS, classification is set with Pareto principle based on the traditional ABC analysis. Results of the integrated interactive approach and of the traditional ABC analysis are compared with each other. The steps of the interactive approach are programmed by using MATLAP software. The proposed approach gives effective and implementable results for the firm.