An effective way for managing and controlling a large number of inventory items or stock keeping units (SKUs) is the inventory classification. Traditional ABC analysis which based on only a single criterion is commonly used for classification of SKUs. However, we should consider inventory classification as a multi-criteria problem in practice. In this study, a new method of Evaluation based on ...

ABC analysis is a popular and effective method used to classify inventory items into specific categories that can be managed and controlled separately. In traditional ABC analysis the inventory items are categorized in to A ,B and C classes based on the annual dollar usage. The annual dollar usage is determined as the product of unit cost of each item and its annual demand. The items are arrang...

ABC analysis is a popular and effective method used to classify inventory items into specific categories that can be managed and controlled separately. Conventional ABC analysis classifies inventory items three categories: A, B, or C based on annual dollar usage of an inventory item. Multi-criteria inventory classification has been proposed by a number of researchers in order to take other impo...