EconPapers    
Economics at your fingertips  
 

New AHP-based approaches for multi-criteria inventory classification

F. Lolli, A. Ishizaka and R. Gamberini

International Journal of Production Economics, 2014, vol. 156, issue C, 62-74

Abstract: Multi-Criteria Inventory Classification (MCIC) groups inventory items with respect to several criteria, in order to facilitate their management. This paper introduces a new hybrid method based on AHP and the K-means algorithm. On benchmarking data, it provides a clearly higher clustering validity index than previous sorting methods. However, as with previous methods, it is a full compensatory method. This means that an item scoring badly on one or more key criteria may still be placed in the best class because these bad scores are compensated. In order to prevent these hidden bad scores, a new variant method is introduced: AHP-K-Veto. The sorting is performed on each single criterion, where a veto system prevents an item evaluated as high/bad on at least one criterion to be top/bottom ranked in the global aggregation. This veto system is an assurance against hidden problems but slightly worsens the clustering validity index.

Keywords: Multiple criteria analysis; Assignment; Inventory; AHP; K-Means (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527314001789
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:156:y:2014:i:c:p:62-74

DOI: 10.1016/j.ijpe.2014.05.015

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).

 
Page updated 2025-01-08
Handle: RePEc:eee:proeco:v:156:y:2014:i:c:p:62-74