Performance of Multi-criteria Inventory Control Strategies for a Pump Manufacturing Organization

Abstract

Multi-criteria-based ABC inventory control strategies have been utilized by several stock keeping practitioners instead of a single criterion-based ABC inventory control technique. In this work, few multi-criteria inventory classification (MCIC) techniques are explored to manage large and distinct stock keeping units of a pump manufacturing company. A large number of raw material and finished goods inventory items are considered in this inventory control analysis. In the past, only few researchers used the multi-criteria ABC inventory control techniques to ensure efficient inventory management policy in the pump manufacturing sector. The present work includes inventory fill rate and safety stock inventory cost analysis using different MCIC approaches. A numerical comparison is drawn among those MCIC techniques to ensure higher achievable fill rate and optimum safety stock inventory cost. Furthermore, the inventory performance measurements have been conducted in different service levels under standard normal distribution. It enables to identify suitable inventory control system to implement in the pump manufacturing industry to benefit the organization.