IDEAS home Printed from https://ideas.repec.org/a/anm/alpnmr/v9y2021i2p325-334.html
   My bibliography  Save this article

ABC/XYZ Inventory Management Model in a Construction Material Warehouse

Author

Listed:
  • Željko Stević
  • Bećirović Merima

Abstract

Accounting monitoring stocks of raw materials and supplies plays an important role in the business of every major company. Since inventories are one of the most expensive types of company assets, accounting for more than 50% of total invested capital, optimal inventory management should be an integral part of every company's business. In order to get complete results, this paper applies the ABC method, XYZ method, as well as the cross ABC XYZ method. The goal is to reduce costs of keeping the inventory as much as possible, while maintaining a level of service customers requires. The process of assortment planning, ordering and inventory management in the construction material warehouse is analyzed. The importance of monitoring inventory movements in order to achieve optimal amount of inventory, as well as the obtained results and guidelines for future operations is presented.

Suggested Citation

  • Željko Stević & Bećirović Merima, 2021. "ABC/XYZ Inventory Management Model in a Construction Material Warehouse," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 9(2), pages 325-334, December.
    • Handle: RePEc:anm:alpnmr:v:9:y:2021:i:2:p:325-334
    DOI: http://dx.doi.org/10.17093/alphanumeric.1052034
    as

    Download full text from publisher

    File URL: https://www.alphanumericjournal.com/media/Issue/volume-9-issue-2-2021/abcxyz-inventory-management-model-in-a-construction-material_ktSnjFt.pdf
    Download Restriction: no
    File URL: https://alphanumericjournal.com/article/abcxyz-inventory-management-model-in-a-construction-material-warehouse
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.17093/alphanumeric.1052034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Liu, Jiapeng & Liao, Xiuwu & Zhao, Wenhong & Yang, Na, 2016. "A classification approach based on the outranking model for multiple criteria ABC analysis," Omega, Elsevier, vol. 61(C), pages 19-34.
    2. Ng, Wan Lung, 2007. "A simple classifier for multiple criteria ABC analysis," European Journal of Operational Research, Elsevier, vol. 177(1), pages 344-353, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Saffarzadeh & A. Hadi-Vencheh & A. Jamshidi, 2019. "An Interval Based Score Method for Multiple Criteria Decision Making Problems," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(05), pages 1667-1687, September.
    2. Hu, Qiwei & Chakhar, Salem & Siraj, Sajid & Labib, Ashraf, 2017. "Spare parts classification in industrial manufacturing using the dominance-based rough set approach," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1136-1163.
    3. Fan Liu & Ning Ma, 2019. "Multicriteria ABC Inventory Classification Using the Social Choice Theory," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    4. Sheikh-Zadeh, Alireza & Rossetti, Manuel D. & Scott, Marc A., 2021. "Performance-based inventory classification methods for large-Scale multi-echelon replenishment systems," Omega, Elsevier, vol. 101(C).
    5. 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).
    6. Hu, Qiwei & Boylan, John E. & Chen, Huijing & Labib, Ashraf, 2018. "OR in spare parts management: A review," European Journal of Operational Research, Elsevier, vol. 266(2), pages 395-414.
    7. Sheikh-Zadeh, Alireza & Rossetti, Manuel D., 2020. "Classification methods for problem size reduction in spare part provisioning," International Journal of Production Economics, Elsevier, vol. 219(C), pages 99-114.
    8. 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.
    9. Hadhami Kaabi & Khaled Jabeur & Talel Ladhari, 2018. "A Genetic Algorithm-Based Classification Approach for Multicriteria ABC Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(06), pages 1805-1837, November.
    10. Fatih Yiğit & Şakir Esnaf, 2021. "A new Fuzzy C-Means and AHP-based three-phased approach for multiple criteria ABC inventory classification," Journal of Intelligent Manufacturing, Springer, vol. 32(6), pages 1517-1528, August.
    11. Jafar Rezaei & Negin Salimi, 2015. "Optimal ABC inventory classification using interval programming," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(11), pages 1944-1952, August.
    12. Cheng Peng & Xunbo Wu & Yelin Fu & Kin Keung Lai, 2017. "Alternative approaches to constructing composite indicators: an application to construct a Sustainable Energy Index for APEC economies," Operational Research, Springer, vol. 17(3), pages 747-759, October.
    13. Alessio Ishizaka & Maynard Gordon, 2017. "MACBETHSort: a multiple criteria decision aid procedure for sorting strategic products," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(1), pages 53-61, January.
    14. Siamak Kheybari & S. Ali Naji & Fariba Mahdi Rezaie & Reza Salehpour, 2019. "ABC classification according to Pareto’s principle: a hybrid methodology," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 539-562, June.
    15. Kadziński, Miłosz & Stamenković, Mladen & Uniejewski, Maciej, 2022. "Stepwise benchmarking for multiple criteria sorting," Omega, Elsevier, vol. 108(C).
    16. Tang, Ming & Liao, Huchang, 2021. "From conventional group decision making to large-scale group decision making: What are the challenges and how to meet them in big data era? A state-of-the-art survey," Omega, Elsevier, vol. 100(C).
    17. Liu, Jiapeng & Liao, Xiuwu & Zhao, Wenhong & Yang, Na, 2016. "A classification approach based on the outranking model for multiple criteria ABC analysis," Omega, Elsevier, vol. 61(C), pages 19-34.
    18. Zhou, Peng & Fan, Liwei, 2007. "A note on multi-criteria ABC inventory classification using weighted linear optimization," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1488-1491, November.
    19. Giannis Karagiannis & Suzanna M. Paleologou, 2021. "A regression-based improvement to the multiple criteria ABC inventory classification analysis," Annals of Operations Research, Springer, vol. 306(1), pages 369-382, November.
    20. Wanke, Peter & Pestana Barros, Carlos & Chen, Zhongfei, 2015. "An analysis of Asian airlines efficiency with two-stage TOPSIS and MCMC generalized linear mixed models," International Journal of Production Economics, Elsevier, vol. 169(C), pages 110-126.

    More about this item

    Keywords

    ABC Analysis; Inventory Management; Warehouse; XYZ Analysis;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anm:alpnmr:v:9:y:2021:i:2:p:325-334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bahadir Fatih Yildirim (email available below). General contact details of provider: https://www.alphanumericjournal.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.