The objective of inventory management is to make decisions regarding the appropriate
level of inventory. In practice, all inventories cannot be controlled with equal attention.
The most widespread used inventory system is the ABC classification system, but the limitation
of the ABC control system is that only one criterion is considered.
The purpose of this paper is to propose a new inventory control approach called ABC–fuzzy
classification (ABC–FC), which can handle variables with either nominal or non-nominal
attribute, incorporate manager’s experience, judgment into inventory classification, and
can be implemented easily.
Our ABC–FC approach is implemented based on the data of the Keelung Port. The results of
our study show that 59 items are identified as very important group, 69 items as important
group, and the remaining 64 items as unimportant group. By comparing the results of ABC–
FC with the original data, we find that our ABC–FC analysis shows a high accuracy of classification.
Some concluding remarks and suggestions for inventory control are also
provided.
fuzzy classification
The objective of inventory management is to make decisions regarding the appropriatelevel of inventory. In practice, all inventories cannot be controlled with equal attention.The most widespread used inventory system is the ABC classification system, but the limitationof the ABC control system is that only one criterion is considered.The purpose of this paper is to propose a new inventory control approach called ABC–fuzzyclassification (ABC–FC), which can handle variables with either nominal or non-nominalattribute, incorporate manager’s experience, judgment into inventory classification, andcan be implemented easily.Our ABC–FC approach is implemented based on the data of the Keelung Port. The results ofour study show that 59 items are identified as very important group, 69 items as importantgroup, and the remaining 64 items as unimportant group. By comparing the results of ABC–FC with the original data, we find that our ABC–FC analysis shows a high accuracy of classification.Some concluding remarks and suggestions for inventory control are alsoprovided.fuzzy classification
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