Multi-Criteria Inventory Classification by Using a Fuzzy Analytic Network Process (ANP) Approach

Inventory management is an important part of production planning process for enterprises. Decisions for strategies to determine when and how many to buy or make can be made by classifying the inventory items based on their sorts. In this evaluation, ABC inventory classification is one of the most commonly used approaches. In this study, a fuzzy analytic network process approach was proposed to determine the weights of the criteria and the scores of the inventory items were determined with simple additive weighting by using linguistic terms. Applying fuzzy ANP to a multi-criteria inventory classification problem is the novelty of this study in the related literature. In addition, the application area of the problem which is the management of the engineering vehicles' items in a construction firm is different from the other studies.

[1]  Joseph Sarkis,et al.  Strategic analysis of logistics and supply chain management systems using the analytical network process , 1998 .

[2]  Metin Dagdeviren,et al.  A fuzzy analytic network process (ANP) model for measurement of the sectoral competititon level (SCL) , 2010, Expert Syst. Appl..

[3]  R. P. Mohanty,et al.  A fuzzy ANP-based approach to R&D project selection: A case study , 2005 .

[4]  Umut Rifat Tuzkaya,et al.  Selecting container port via a fuzzy ANP-based approach: A case study in the Marmara Region, Turkey , 2011 .

[5]  Madan M. Gupta,et al.  Fuzzy mathematical models in engineering and management science , 1988 .

[6]  Daniel Sipper,et al.  Production: Planning, Control and Integration , 1997 .

[7]  H. Zimmermann,et al.  Fuzzy Set Theory and Its Applications , 1993 .

[8]  Ali Fuat Guneri,et al.  A fuzzy ANP approach to shipyard location selection , 2009, Expert Syst. Appl..

[9]  Jonathan Burton,et al.  Using the Analytic Hierarchy Process for ABC Analysis , 1993 .

[10]  T. Saaty.  Fundamentals of Decision Making and Priority Theory With the Analytic Hierarchy Process , 2000 .

[11]  Huan-Jyh Shyur,et al.  COTS evaluation using modified TOPSIS and ANP , 2006, Appl. Math. Comput..

[12]  Ludmil Mikhailov,et al.  A fuzzy programming method for deriving priorities in the analytic hierarchy process , 2000, J. Oper. Res. Soc..

[13]  J. Buckley,et al.  Fuzzy hierarchical analysis , 1999, FUZZ-IEEE'99. 1999 IEEE International Fuzzy Systems. Conference Proceedings (Cat. No.99CH36315).

[14]  H. Altay Güvenir,et al.  Multicriteria inventory classification using a genetic algorithm , 1998, Eur. J. Oper. Res..

[15]  Gülçin Büyüközkan,et al.  A fuzzy optimization model for QFD planning process using analytic network approach , 2006, Eur. J. Oper. Res..

[16]  Metin Dagdeviren,et al.  Using the fuzzy analytic network process (ANP) for Balanced Scorecard (BSC): A case study for a manufacturing firm , 2010, Expert Syst. Appl..

[17]  Ruoning Xu,et al.  Fuzzy least-squares priority method in the analytic hierarchy process , 2000, Fuzzy Sets Syst..

[18]  Ludmil Mikhailov,et al.  Deriving priorities from fuzzy pairwise comparison judgements , 2003, Fuzzy Sets Syst..

[19]  Da Ruan,et al.  Determining the importance weights for the design requirements in the house of quality using the fuzzy analytic network approach , 2004, Int. J. Intell. Syst..

[20]  Jian-Bo Yang,et al.  A two-stage logarithmic goal programming method for generating weights from interval comparison matrices , 2005, Fuzzy Sets Syst..

[21]  Abdollah Hadi-Vencheh,et al.  A fuzzy AHP-DEA approach for multiple criteria ABC inventory classification , 2011, Expert Syst. Appl..

[22]  Richard Bellman,et al.  Decision-making in fuzzy environment , 2012 .

[23]  Ricardo Ernst,et al.  MULTI-ITEM CLASSIFICATION AND GENERIC INVENTORY STOCK CONTROL POLICIES , 1988 .

[24]  Ching-Hsue Cheng,et al.  Evaluating attack helicopters by AHP based on linguistic variable weight , 1999, Eur. J. Oper. Res..

[25]  Gwo-Hshiung Tzeng,et al.  An integrated Fuzzy-ANP model for value investing , 2010, 2010 Seventh International Conference on Fuzzy Systems and Knowledge Discovery.

[26]  David L. Olson,et al.  Management of multicriteria inventory classification , 1992 .

[27]  İhsan Yüksel,et al.  A fuzzy analytic network process (ANP) model to identify faulty behavior risk (FBR) in work system , 2008 .

[28]  Selin Soner Kara,et al.  Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company , 2009, Expert Syst. Appl..

[29]  몬티 엘. 그리핀,et al.  Spare parts inventory management , 2006 .

[30]  Madan G. Singh,et al.  Fuzzy analytic network process and its application to the development of decision support systems , 2003, IEEE Trans. Syst. Man Cybern. Part C.

[31]  Keith W. Hipel,et al.  A case-based distance model for multiple criteria ABC analysis , 2008, Comput. Oper. Res..

[32]  James J. Buckley,et al.  Fuzzy hierarchical analysis: the Lambda-Max method , 2001, Fuzzy Sets Syst..

[33]  Wan Lung Ng,et al.  Production , Manufacturing and Logistics A simple classifier for multiple criteria ABC analysis , 2006 .

[34]  Gwo-Hshiung Tzeng,et al.  A hybrid ANP model in fuzzy environments for strategic alliance partner selection in the airline industry , 2011, Appl. Soft Comput..

[35]  Peter C. Fishburn,et al.  Failure of cancellation conditions for additive linear orders , 1997 .

[36]  Thomas L. Saaty,et al.  Decision making with dependence and feedback : the analytic network process : the organization and prioritization of complexity , 1996 .

[37]  Abdollah Hadi-Vencheh,et al.  An improvement to multiple criteria ABC inventory classification , 2010, Eur. J. Oper. Res..

[38]  R. Hämäläinen,et al.  The analytic network process in energy policy planning , 1986 .

[39]  W. Pedrycz,et al.  A fuzzy extension of Saaty's priority theory , 1983 .

[40]  I-Shuo Chen,et al.  Using a novel conjunctive MCDM approach based on DEMATEL, fuzzy ANP, and TOPSIS as an innovation support system for Taiwanese higher education , 2010, Expert Syst. Appl..

[41]  Murugan Anandarajan,et al.  Classifying inventory using an artificial neural network approach , 2002 .

[42]  T. Saaty,et al.  Dependence and independence: From linear hierarchies to nonlinear networks , 1986 .

[43]  Thomas L. Saaty,et al.  DECISION MAKING WITH THE ANALYTIC HIERARCHY PROCESS , 2008 .

[44]  Jih-Jeng Huang,et al.  Multidimensional data in multidimensional scaling using the analytic network process , 2005, Pattern Recognit. Lett..

[45]  Umut Rifat Tuzkaya,et al.  A fuzzy analytic network process based approach to transportation-mode selection between Turkey and Germany: A case study , 2008, Inf. Sci..

[46]  Fariborz Y. Partovi,et al.  THE ANALYTIC HIERARCHY PROCESS AS APPLIED TO TWO TYPES OF INVENTORY PROBLEMS , 1993 .

[47]  Ramakrishnan Ramanathan,et al.  ABC inventory classification with multiple-criteria using weighted linear optimization , 2006, Comput. Oper. Res..

[48]  Chandrasekharan Rajendran,et al.  Criticality analysis of spare parts using the analytic hierarchy process , 1994 .

[49]  Jafar Rezaei,et al.  A rule-based multi-criteria approach to inventory classification , 2010 .

[50]  D. Clay Whybark,et al.  Implementing multiple criteria ABC analysis , 1989 .

[51]  Peng Zhou,et al.  A note on multi-criteria ABC inventory classification using weighted linear optimization , 2007, Eur. J. Oper. Res..

[52]  Ching-Lai Hwang,et al.  Fuzzy Multiple Attribute Decision Making - Methods and Applications , 1992, Lecture Notes in Economics and Mathematical Systems.