ABC Classification: Service Levels and Inventory Costs

Teunter, Ruud H.; Babaï, Mohamed Zied; Syntetos, Aris A.

doi:10.1111/j.1937-5956.2009.01098.x

Cited by 130 publications

(98 citation statements)

References 24 publications

(36 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Single-Criterion Inventory Classification (SCIC) methods are often used in practice with traditional criteria such as the demand value or the demand volume (Syntetos et al, 2009). These methods have also been analyzed for many decades by inventory researchers (Teunter et al, 2010). Furthermore more recently, Multi-Criteria Inventory Classification methods (MCIC) have been developed where a combination of criteria such as the lead time, the criticality, the price, etc.…”

Section: Introductionmentioning

confidence: 99%

“…To the best of our knowledge, only two research works have recently tackled this issue by proposing new classification methods that aim to improve the inventory performance whilst classifying the SKUs. (Teunter et al, 2010) have proposed a new ABC classification method based on a cost criterion for ranking the SKUs. The classification criterion is based on the demand rate, the inventory holding cost and the order quantity of each SKU.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

On the inventory performance of multi-criteria classification methods: empirical investigation

Babaï

Ladhari

Lajili

2014

International Journal of Production Research

View full text Add to dashboard Cite

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

On the inventory performance of multi-criteria classification methods: empirical investigation

Babaï

Ladhari

Lajili

2014

International Journal of Production Research

View full text Add to dashboard Cite

“…The ABC method is widely used to streamline an organization, and it is commonly used to manage inventory with a large number of distinct items 24 and may be suitable to classify production line operations and thereby increase effectiveness 25 of production parameters' optimization.…”

Section: Introductionmentioning

confidence: 99%

Production process parameter optimization with a new model based on a genetic algorithm and ABC classification method

Erić

Stefanović

Đorđević

et al. 2016

Advances in Mechanical Engineering

View full text Add to dashboard Cite

The difference between the production cost and selling price of the products may be viewed as a criterion that determines an organization's competitiveness and market success. In such circumstances, it is necessary to impact these criteria in order to maximize this difference. The selling products' price, in modern market conditions, is a category which may not be significantly affected. So organizations have one option, which is the production cost reduction. This is the motive for business organizations and the imperative of each organization. The key parameters that influence the costs of production and therefore influence the competitiveness of organizations are the parameters of production machines and processes used to create products. To define optimal parameter values for production machines and processes that will reduce production costs and increase competitiveness of production organizations, the authors have developed a new mathematical model. The model is based on application of the ABC classification method to classify production line processes based on their costs and an application of a genetic algorithm to find the optimal values of production machine parameters used in these processes. It has been applied in three different modern production line processes; the costs obtained by the model application have been compared with the real production costs.

show abstract

“…However, despite the fact that the classical ABC-method is easy to understand and implement, it is only successful when the classification considers one single criterion. Teunter et al [23] have shown that the ABC ranking criteria as cost value and demand volume can lead to inefficient solutions. This has led researchers and practitioners to extend the traditional ABCclassification to a multi-criteria ABC-analysis including other parameters like unit cost, fail rate and lead time.…”

Section: Introductionmentioning

confidence: 99%

Spare parts criticality analysis using a fuzzy AHP approach

Durán

2015

Teh. vjesn.

View full text Add to dashboard Cite

Original scientific paper A distinctive characteristic of the spare parts inventory system is the need to evaluate or define the criticality of items in the inventory. Therefore, there is a need to consider factors such as cost, failure rate and availability, among others. There are few papers in literature that discuss relevant methods to define a reliable hierarchy of a set of spare parts. Up to now, no article has considered ambiguity and uncertainty factors when performing criticality analysis of spare parts. In addition, criticality analysis involves the simultaneous consideration of multiple criteria, including tangible and intangible factors; prioritizing these factors can be a great challenge and a complex task. Therefore, no attempt has been made to incorporate fuzziness into multicriteria decision-making in the criticality analysis in spare parts management. This work proposes a fuzzy-based methodology for prioritization of spare parts. The proposal is based on a multicriteria decision method called Analytical Hierarchy Process (AHP) with triangular numbers. An example is given to illustrate the proposed methodology. Keywords: Analytic Hierarchy Process (AHP); criticality; fuzzy AHP; spare parts Analiza kritičnosti rezervnih dijelova primjenom pristupa neizrazitog analitičkog hijerarhijskog procesIzvorni znanstveni članak Specifično obilježje sustava zalihe rezervnih dijelova je potreba da se procijeni ili odredi kritičnost stavki u zalihi. Stoga je, između ostalih, potrebno razmotriri čimbenike poput cijene, intenziteta kvarenja i raspoloživosti. Postoji mali broj radova u literaturi koji obrađuju relevantne metode za određivanje pouzdane hijerarhije u skupini rezervnih dijelova. Do sada, nijedan rad nije obradio čimbenike nesigurnosti i dvosmislenosti prilikom analize kritičnosti rezervnih dijelova. Uz to, analiza kritičnosti uključuje istovremeno razmatranje višestrukih kriterija, uključujući stvarne i nestvarne čimbenike; davanje prednosti tim čimbenicima može predstavljati veliki izazov i složen zadatak. Zbog toga se nije pokušalo uključiti neizrazitost (fuzziness) pri donošenju odluka o višestrukim kriterijima u analizi kritičnosti kod upravljanja rezervnim dijelovima. U ovom se radu predlaže fuzzy-temeljena metodologija kod određivanja prednosti (prioritizacije) rezervnih dijelova. Prijedlog se zasniva na metodi donošenja odluke na temelju višestrukih kriterija nazvanoj Analitički Hijerarhijski Proces (AHP) s trokutastim (triangular) brojevima. Daje se primjer za ilustraciju ove metodologije.

show abstract

ABC Classification: Service Levels and Inventory Costs

Cited by 130 publications

References 24 publications

On the inventory performance of multi-criteria classification methods: empirical investigation

On the inventory performance of multi-criteria classification methods: empirical investigation

Production process parameter optimization with a new model based on a genetic algorithm and ABC classification method

Spare parts criticality analysis using a fuzzy AHP approach

Contact Info

Product

Resources

About