Research Information System
The 3rd International Conference on Innovative Research in Management, Economics and Accounting, İstanbul, Turkey, 15 March 2016, pp.1-7, (Full Text)
Classification of items is very important subject in inventory management for planning and control purposes. Traditionally, the ABC inventory classification process is based on a single criterion, which is generally the annual usage value given by the product of the annual demand and the average unit price. However, the traditional ABC classification considers only one criterion to classify inventory. More practical and effective ABC analysis needs to consider various important criteria such as inventory cost, part criticality, lead time, substitutability, obsolescence, order size requirement, demand distribution, perishability. In this study, we proposed a new differential evaluation algorithm (DEA) for multiple criteria inventory classification (MCIC). The objective of this study is to minimize the total relevant cost while classifying the items according to the annual dollar usage, average unit cost and lead time criteria. We performed an experiment in order to test the performance of the proposed DEA with respect to some others ABC inventory classification models, a benchmark data set of 47 items from an Hospital Respiratory Therapy Unit is used.