A CRITIC-Based Improved Version for Multiple Criteria ABC Inventory Classification

In this paper, we present an improved version of Ramanathan model [R. Ramanathan, ABC inventory classification with multiple-criteria using weight linear optimization, Computer and Operations Research 33 (2006) 695-700] and Zhou and Fan model [P. Zhou & L. Fan, A note on multi-criteria ABC inventory classification (MCABCIC) using weighted linear optimization, European Journal of Operation Research, 182 (2007) 1488-1491]. The model that Ramanathan [1] offered, hereafter called the R-model, in spite of its advantages may lead to a situation in which the weights of some criteria in relation to an item would not play any role in determining the its overall score. Thus, for the R inventory items, the Zhou and Fan [2] approach, hereafter called the ZF-model, may lead to a situation where an item with a high value for an unimportant criterion is inappropriately classified as class A. Furthermore, none of the above studies take into account the ranking order of the criteria. Therefore, in order to remove drawbacks of both approaches, an integrated model based on criteria importance through inter-criteria correlation (CRITIC) is applied. The proposed approach determines the objective weights associated with all criteria rankings. At last, the results obtained from implementing the proposed model on an illustrative example are compared with other models.