Volume 53, Number 5, November-December 2019
|Page(s)||1775 - 1789|
|Published online||11 October 2019|
A common-weight DEA model for multi-criteria ABC inventory classification with quantitative and qualitative criteria
School of Business, Central South University, 410083 Changsha, Hunan, PR China
2 School of Management, Hefei University of Technology, 230009 Hefei, Anhui, PR China
* Corresponding author: firstname.lastname@example.org; email@example.com
Accepted: 13 November 2018
ABC analysis is a famous technique for inventory classification. However, this technique on the inventory classification only considering one indicator even though other important factors may affect the classification. To address this issue, researchers have proposed multiple criteria inventory classification (MCIC) solutions based on data envelopment analysis (DEA)-like methods. However, previous models almost evaluate items by different weight sets, and the index system only contains quantitative criteria and output indicators. To avoid these shortcomings, we propose an improved common-weight DEA model for MCIC issue. This model simultaneously considers quantitative and qualitative criteria as well as establishes a comprehensive index system that includes inputs and outputs. Apart from its improved discriminating power and lack of subjectivity, this non-parametric and linear programming model provides the performance scores of all items through a single computation. A case study is performed to validate and compare the performance of this new model with that of traditional ABC analysis, DEA–CCR and DEA–CI. The results show that apart from the highly improved discriminating power and significant reduction in computational burden, the proposed model has achieved a more comprehensive ABC inventory classification than the traditional models.
Mathematics Subject Classification: 90B30 / 90B50
Key words: ABC inventory classification / multiple criteria inventory classification (MCIC) / data envelopment analysis (DEA) / common-weight / qualitative criteria
© EDP Sciences, ROADEF, SMAI 2019
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