Using the Analytic Hierarchy Process for ABC Analysis

Abstract

Presents a multicriteria approach to the ABC classification problem in inventory control. The proposed method, based on Saaty′s Analytic Hierarchy Process, rates items on both qualitative and quantitative criteria. Demonstrates the model through an example, using real data from the maintenance department stock room of a pharmaceutical company. A series of simulation experiments show how the resulting classification can benefit inventory control in this company.