Review article

Application of different quantitative techniques to inventory classification

Katica Šimunović ; University J. J. Strossmayer in Osijek, Mechanical Engineering Faculty in Slavonski Brod, Trg Ivane Brlić-Mažuranić 2, 35000 Slavonski Brod, Croatia
Tomislav Draganjac ; Same Deutz Fahr - Žetelice d.o.o., Industrijska 5, 32270 Županja, Croatia
Goran Šimunović ; University J. J. Strossmayer in Osijek, Mechanical Engineering Faculty in Slavonski Brod, Trg Ivane Brlić-Mažuranić 2, 35000 Slavonski Brod, Croatia

Abstract

In this paper, through example, a comparison between the traditional ABC inventory classification and advanced multiple criteria inventory classification method has been given. Inventory control or management, which is one of the important techniques of operational research field, plays an important role in the company management. Application of different inventory control methods and models has a great influence on improving the company competitiveness. The traditional ABC method of inventory classification is based only on one criterion. This criterion, very often, is not the most important one, so different multiple criteria decision making methods have been developed. Some of them are described in this paper and applied for the classification of parts for the assembly of agricultural machine. The parts are classified using the traditional ABC classification based only on one criterion and analytical hierarchy process (AHP) methodology.

Keywords

inventory control; multiple criteria decision making; ABC inventory classification; analytical hierarchy process

Hrčak ID:

31412

URI

https://hrcak.srce.hr/31412

Publication date:

31.12.2008.

Article data in other languages: croatian

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