Group multiple criteria ABC inventory classification using TOPSIS approach extended by Gaussian interval type-2 fuzzy sets and optimization programs

Abstract

The traditional ABC inventory classification is one of such approaches in which items are classified into three classes: A, very important; B, moderately important; and C, relatively unimportant based on annual dollar usage. However, other qualitative or quantitative criteria in real world may affect grouping items in the ABC inventory classification. Hence, multiple criteria ABC inventory classification (MCABCIC) is applied to classify items, instead of using the traditional ABC inventory classification. Hence, it can be taken into account as a multiple-criteria decision making (MCDM) problem due to using different criteria. The aim of this paper is to the extent TOPSIS approach with Gaussian interval type-2 fuzzy sets (GIT2FSs) as an alternative to the traditional triangular membership functions (MFs) for the MCABCIC in which GIT2FSs are more suitable for stating curved MFs. For this purpose, a new limit distance is presented for prioritizing GIT2FSs which is based on alpha cuts. The proposed method determines the positive and negative ideal solutions as left and right reference limits and then calculates distances between assessments and these limits. In our approach, the weights of the quantitative and qualitative criteria are attained via two linear programming, respectively. The model is illustrated using a real case.