Multiple Criteria Inventory Classification for Storage Assignment and a Case Study

Warehouse management has been turned into a more complicated issue depending on dynamics pertain to customer, good, speed and cost. It’s an inefficient and difficult approach to control all the stored items at the same level. Based on these; the main purpose of this study is bringing in a policy for warehouse management with the help of ABC Analysis via submitting the goods to inventory based classification. The goods will be assigned to slots according to their distances to the I/O point (Input/output point) by considering their importance orders at the end. In this context, DEMATEL method is utilized besides the Multi Criteria ABC Analysis methods used in literature. Initially Multi Criteria Decision Making techniques with weighted linear optimization, and in the following in order to make these calculations more accurate, calculation of cross evaluation of goods has been made in the literature. However, when we consider the calculation of cases which has increased numbers of goods, classification will be pretty hard. Thence, only cross evaluation points of goodsexceeding a threshold value when we apply DEMATEL method are calculated and applied to classification. On a model warehouse, mentioned techniques are benchmarked and it is shown that the approach, which is offered by us, reached similar or better results than the approaches in the literature in less time.