An improved decision support system for ABC inventory classification
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ORIGINAL PAPER
An improved decision support system for ABC inventory classification Ergün Eraslan1 · Yusuf Tansel İÇ2 Received: 9 October 2018 / Accepted: 21 February 2019 © Springer-Verlag GmbH Germany, part of Springer Nature 2019
Abstract In this study, an Improved Decision Support System (IDSS) is developed to help the decision makers in their inventory classification decisions. For the first time in this paper, the novel IDSS for ABC classification is developed. Certain new algorithms regarding the manufacturing company’s features are applied in a framework of IDSS. The IDSS is developed as modular structure and provided the integrated modules of “Data-Base” and “ABC Analysis”. In the developed IDSS, the appropriate ABC classification models are considered among Annual Dollar Usage (ADU), Analytic Hierarchy Process (AHP), Scoring (SCR), Fuzzy C-means Algorithm (FCM), and Analytic Network Process (ANP). Some issues and applicability of the IDSS are illustrated with real case problems in the paper. The proposed IDSS software is considerably decreased the time for the inventory classification. In the meantime it could be easily used in various sectors. Therefore, the proposed IDSS significantly contributed to obtaining more accurate and quickly modifiable ABC classification in real cases. Furthermore, the user friendly software can be updated readily according to recent developments in the market. Keywords Inventory management · ABC inventory classification · Decision support systems · Multi-criteria decision making · Fuzzy classification
1 Introduction Extensive production/distribution systems, ever expanding product family, and the uncertainty and complexity of the relationship between demand and product usually obligate the companies to maintain a large inventory level in their balance sheets (Groover 2008; Jolai et al. 2011). Application of appropriate inventory management policies is a crucial issue in increasing productivity and profitability under competitive market conditions. A company has to balance between the benefits and costs of the inventory in order to reach an optimal inventory level (Das et al. 2012). The true inventory policies are needed to describe the effects of inventories on cost, performance and system constraints (Groover 2008). The efficient inventory management applications reduce the costs and increase the competitive advantages. Reduced costs and increased competitive advantages * Yusuf Tansel İÇ [email protected] 1
Department of Industrial Engineering, Yıldırım Beyazıt University, 06050 Ulus, Ankara, Turkey
Department of Industrial Engineering, Baskent University, Baglica Campus, 06810 Etimesgut, Ankara, Turkey
2
will remarkably increase the profitability and productivity of the company in the competition in the market. Each item in the inventory has a different value that decreases over time and companies have to determine the importance values of the items in relation to the company’s operations. An active inventory control system is highly required for an effi
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