A multiattribute ABC classification model using fuzzy AHP

Ferhan Çebi*, Cengiz Kahraman, Bersam Bolat

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

16 Citations (Scopus)

Abstract

ABC analysis is one of the most widely used techniques in organizations to classify inventory items. This classification is based on the Pareto principle. The main limitation of the Pareto principle comes from its one dimensional analysis. To overcome this limitation, an ABC analysis based on a multiattribute classification can be used. Many attributes are hard to define precisely in this analysis. The fuzzy set theory can overcome this problem by incorporating imprecision and subjectivity into a multiattribute ABC classification model. In this paper, Zeng 's fuzzy analytic hierarchy process is used for classifying inventory items by taking care of conflicting attributes like demand, unit cost, substitutability, payment terms, and lead time. A real case study in a Turkish firm distributing fast moving consumer goods is realized. The obtained results show that this multiattribute fuzzy methodology can be effectively used in classifying inventory items.

Original languageEnglish
Title of host publication40th International Conference on Computers and Industrial Engineering
Subtitle of host publicationSoft Computing Techniques for Advanced Manufacturing and Service Systems, CIE40 2010
DOIs
Publication statusPublished - 2010
Event40th International Conference on Computers and Industrial Engineering, CIE40 2010 - Awaji, Japan
Duration: 25 Jul 201028 Jul 2010

Publication series

Name40th International Conference on Computers and Industrial Engineering: Soft Computing Techniques for Advanced Manufacturing and Service Systems, CIE40 2010

Conference

Conference40th International Conference on Computers and Industrial Engineering, CIE40 2010
Country/TerritoryJapan
CityAwaji
Period25/07/1028/07/10

Keywords

  • ABC analysis
  • Analytic Hierarchy Process (AHP)
  • Classification
  • Fuzzy sets
  • Multiple attribute
  • Pareto

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