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An improved decision support system for ABC inventory classification

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Abstract

In this study, an Improved Decision Support System (IDSS) is developed to help the decision makers in their inventory classification decisions. For the first time in this paper, the novel IDSS for ABC classification is developed. Certain new algorithms regarding the manufacturing company’s features are applied in a framework of IDSS. The IDSS is developed as modular structure and provided the integrated modules of “Data-Base” and “ABC Analysis”. In the developed IDSS, the appropriate ABC classification models are considered among Annual Dollar Usage (ADU), Analytic Hierarchy Process (AHP), Scoring (SCR), Fuzzy C-means Algorithm (FCM), and Analytic Network Process (ANP). Some issues and applicability of the IDSS are illustrated with real case problems in the paper. The proposed IDSS software is considerably decreased the time for the inventory classification. In the meantime it could be easily used in various sectors. Therefore, the proposed IDSS significantly contributed to obtaining more accurate and quickly modifiable ABC classification in real cases. Furthermore, the user friendly software can be updated readily according to recent developments in the market.

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Notes

  1. Pareto Principle: It is an axiom of operation management suggested from Italian Economist Vilfredo Pareto in 1986 that “80% of sales come from 20% of clients” (Marshall 2013).

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Acknowledgements

Many thanks to companies from different industries in Ankara-Turkey, whose data and comments essentially helped to overcome some problems during the design of this IDSS. All the authors would like to thank the under graduate students, namely Yavuz Selim Zenger, Fazıl Ziya Pamukoğlu, Muhteşem Tekin, and Erdinç Yıldırım in Department of Industrial Engineering of Baskent University, Ankara, Turkey for implementing base of Visual Basic applications. The authors would also like to thank editor and two anonymous reviewers for their constructive and useful comments on an earlier draft of this paper.

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Authors and Affiliations

  1. Department of Industrial Engineering, Yıldırım Beyazıt University, 06050, Ulus, Ankara, Turkey

    Ergün Eraslan

  2. Department of Industrial Engineering, Baskent University, Baglica Campus, 06810, Etimesgut, Ankara, Turkey

    Yusuf Tansel İÇ

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  1. Ergün Eraslan
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  2. Yusuf Tansel İÇ
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Correspondence to Yusuf Tansel İÇ.

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Eraslan, E., İÇ, Y.T. An improved decision support system for ABC inventory classification. Evolving Systems 11, 683–696 (2020). https://doi.org/10.1007/s12530-019-09276-7

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