An improvement to multiple criteria ABC inventory classification

Abstract

Abstract In this paper we presented an extended version of the Ng-modelg [W.L. Ng, A simple classifier for multiple criteria ABC analysis, European Journal of Operational Research 177 (2007) 344–353] for multi-criteria inventory classification. The proposed model is a nonlinear programming model which determines a common set of weights for all the items. Our model not only incorporates multiple criteria for ABC classification, but also maintains the effects of weights in the final solution, an improvement over the model proposed by Ng. An illustrative example is presented to compare our model and the Ng-model.