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A Weighted Least-Square Dissimilarity Approach for Multiple Criteria ABC Inventory Classification

Author

Listed:
  • Sisi Wu

    (School of Management, University of Science and Technology of China, Hefei, P. R. China2Department of Information Systems, City University of Hong Kong, Hong Kong)

  • Yelin Fu

    (College of Economics, Shenzhen University, Shenzhen, P. R. China4Department of Industrial and Manufacturing Systems Engineering, The University of Hong Kong, Hong Kong)

  • K. K. Lai

    (College of Economics, Shenzhen University, Shenzhen, P. R. China)

  • W. K. John Leung

    (Department of Marketing, City University of Hong Kong, Hong Kong)

Abstract

The present paper develops a weighted least-square dissimilarity approach to address the Multiple Criteria ABC inventory classification problem, when the different criteria ranking makes impossible to achieve a group consensus. The proposed approach effectively eliminates drawbacks regarding subjective judgements of multiple decision makers on the criteria importance, and comprehensively aggregates all rankings of the criteria importance to provide a more reasonable and effective classification mechanism. The common weights associated with all rankings are determined. An illustrative example is presented to compare the performance of our approach with the existing studies.

Suggested Citation

  • Sisi Wu & Yelin Fu & K. K. Lai & W. K. John Leung, 2018. "A Weighted Least-Square Dissimilarity Approach for Multiple Criteria ABC Inventory Classification," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(04), pages 1-12, August.
    • Handle: RePEc:wsi:apjorx:v:35:y:2018:i:04:n:s0217595918500252
    DOI: 10.1142/S0217595918500252
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    References listed on IDEAS

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    1. Tsai, Chi-Yang & Yeh, Szu-Wei, 2008. "A multiple objective particle swarm optimization approach for inventory classification," International Journal of Production Economics, Elsevier, vol. 114(2), pages 656-666, August.
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    9. M.Z. Babai & T. Ladhari & I. Lajili, 2015. "On the inventory performance of multi-criteria classification methods: empirical investigation," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 279-290, January.
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    Cited by:

    1. Zhang, Zeyu & Li, Kevin W. & Guo, Xiaolei & Huang, Jun, 2020. "A probability approach to multiple criteria ABC analysis with misclassification tolerance," International Journal of Production Economics, Elsevier, vol. 229(C).

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