Original scientific paper
https://doi.org/10.31534/engmod.2022.2.ri.04v
Use of the AHP Method to Evaluate Key Inventory Control Indicators: Case Study of a Taiwanese Manufacturer in China
Yao Lin Ong
; Executive Master of Business Administration (EMBA), Chang Jung Christian University, Tainan City 71101, TAIWAN
Cathay Kuo-Tai Kang
; Ph.D. Program in Business and Operations Management, Chang Jung Christian University, Tainan City 71101, TAIWAN
Ji-Feng Ding
orcid.org/0000-0001-5268-3024
; Department of Aviation and Maritime Transportation Management, Chang Jung Christian University, Tainan City 71101, TAIWAN
Abstract
Control of inventory is a crucial management task that can affect a company's success and survival, and good inventory control offers many benefits. In this paper, the Analytic Hierarchy Process (AHP) method is used to investigate key inventory indicators at a manufacturer and obtained an initial set of factors influencing inventory control, including five major assessment dimensions and 15 assessment criteria. "Rolling customer demand forecast accuracy" was a key assessment dimension that can be used to evaluate the case company's inventory. The five most important key inventory control indicators consisted of "forecasting accuracy," "purchases in China," "production, sale, and inventory (PSI) meeting," "skilled worker turnover rate," and "major changes in market demand." In addition, these key indicators are discussed and some practical recommendations are made.
Keywords
inventory control; indicator; Taiwanese manufacturer; Analytic Hierarchy Process (AHP)
Hrčak ID:
284176
URI
Publication date:
5.5.2022.
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