A New Method of Storage Management Based on ABC Classification: A Case Study in Chinese Supermarkets’ Distribution Center

Abstract

Most of the distribution centers of chain supermarkets in China adopt the excessively simple activity-based classification (ABC) as the management method of classifying warehousing work, which often leads to an increase in operation and storage costs of the enterprise, a decrease in efficiency of the commodity circulation operation, and, eventually, a loss in enterprise growth because the goods ordered by stores cannot be delivered immediately. In addition, many studies in recent years have aimed at solving the problems of ABC classification by using the concept, method, or model of multi-criteria; however, limitations can be found in these studies. The main purpose of this study is to propose a new method, based on ABC classification, to improve the shortcomings of traditional classification methods, especially for special industries such as chain supermarkets. First, the case was classified using the ABC classification method as designed according to the actual situation of the case, and then the modified Delphi method, factor analysis, and analytic network process (ANP) decision model constructed by focus group was applied. Finally, ANP is used to put forward a specific improvement scheme and countermeasures for the storage management classification plan of the case. Last but not least, to verify the applicability of the model, an actual case was used to test the model. The results show the reference value and practicability of the proposed model. Furthermore, it can be offered as a set of systematic and scientific decision-making reference standards for managers and decision-makers of chain supermarkets when making warehouse management plans and standards.