MODIFIED FUZZY ANALYTICAL HIERARCHY PROCESS FOR MULTIPLE CRITERIA INVENTORY CLASSIFICATION
Keywords:
Multi-criteria inventory classification, fuzzy analytic hierarchy process, triangular fuzzy numberAbstract
A systematic approach to inventory control and classification may have a significant influence on company competitiveness. In order to efficiently control the inventory items and to determine suitable ordering policies for them, a multi-criteria inventory classification is used. In this paper, a Modified Fuzzy Analytic Hierarchy Process (FAHP) is proposed to determine the relative weights of the criteria using Chang’s extent analysis and to classify inventories into different categories. To accredit the proposed model, it is implemented for 351 raw materials of the switchgear section ofEnergypac Engineering Limited (EEL), a large power engineering company in Bangladesh. The results of the study show that 22 items are identified as being in class A or the very important group,47 items as being in class B or the important group, and the remaining 282 items as being in class Cor the relatively unimportant group, and these are used as a basis for the control scheme.
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