Multi-item Inventory Problemliterature Review and a Proposal for Practitioners

  1. Manuel Cardós Carboneras 1
  2. María Victoria de la Fuente Aragón 2
  3. Lorenzo Ross McDonnell 2
  1. 1 Universidad Politécnica de Valencia
    info

    Universidad Politécnica de Valencia

    Valencia, España

    ROR https://ror.org/01460j859

  2. 2 Universidad Politécnica de Cartagena
    info

    Universidad Politécnica de Cartagena

    Cartagena, España

    ROR https://ror.org/02k5kx966

Journal:
Dirección y organización: Revista de dirección, organización y administración de empresas

ISSN: 1132-175X

Year of publication: 2021

Issue: 74

Pages: 67-80

Type: Article

DOI: 10.37610/DYO.V0I74.603 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Dirección y organización: Revista de dirección, organización y administración de empresas

Abstract

Inventory managers have to assign an inventory policy to each item seeking to satisfy a required global service level with the lowest inventory cost. This paper reviews the existing literature and, based on current research, the most appropriate options are proposed to be used by practitioners.

Bibliographic References

  • Arcade, S. (1980) ‘Characteristics of the Pareto sales curve’, Omega, 8(6), pp. 693–694. doi: 10.1016/0305- 0483(80)90011-0.
  • Arrow, K. J., Harris, T. and Marschak, J. (1951) ‘Optimal Inventory Policy’, Econometrica, 19(3), pp. 250–272. Available at: isi:000204900400002.
  • Babai, M. Z., Ladhari, T. and Lajili, I. (2015) ‘On the inventory performance of multi-criteria classification methods: empirical investigation’, International Journal of Production Research, 53(1), pp. 279–290. doi: 10.1080/00207543.2014.952791.
  • Bacchetti, Andrea and Saccani, N. (2012) ‘Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice’, Omega, 40(6), pp. 722–737. doi: 10.1016/j. omega.2011.06.008.
  • Bacchetti, A and Saccani, N. (2012) ‘Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice’, Omega-International Journal of Management Science. Univ Brescia, Supply Chain & Serv Management Res Ctr, Dept Ind & Mech Engn, I-25123 Brescia, Italy, 40(6), pp. 722–737. Available at: isi:000302990300006.
  • Bhattacharya, A., Sarkar, B. and Mukherjee, S. K. (2007) ‘Distance-based consensus method for ABC analysis’, International Journal of Production Research, 45(15), pp. 3405–3420. doi: 10.1080/00207540600847145.
  • Cardos, M., Guijarro, E. and Babiloni, E. (2015) ‘Optimal multi-item fill rate determination for spare parts’, in 2015 International Conference on Logistics, Informatics and Service Sciences (LISS). IEEE, pp. 1–5. doi: 10.1109/LISS.2015.7369652.
  • Cohen, M. A. et al. (1992) ‘Multi-Item Service Constrained (s, S) Policies for Spare Parts Logistics Systems’, Naval Research Logistics, 39, pp. 561–577.
  • Cohen, M. A. and Ernst, R. (1988) ‘Multi-item classification and generic inventory stock control policies’, Production and Inventory Management Journal, 29(3), pp. 6–8. Ding, B. and Sun, L. (2011) ‘An inventory classification model for multiple criteria ABC analysis’, 8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM’11. doi: 10.1109/ICSSSM.2011.5959351.
  • Eilon, S. and Mallya, R. (1985) ‘An extension of the classical A B C inventory control system’, Omega. Pergamon, 13(5), pp. 429–433. doi: 10.1016/0305-0483(85)90070- 2. Flores, B. E., Olson, D. L. and Dorai, V. K. (1992) ‘Management of multicriteria inventory classification’, Mathematical and Computer Modelling, 16(12), pp. 71–82. doi: 10.1016/0895-7177(92)90021-C.
  • Flores, B. E. and Whybark, D. C. (1988) ‘Implementing multiple criteria ABC analysis’, Engineering Costs and Production Economics. Elsevier, 15, pp. 191–195. doi: 10.1016/0167-188X(89)90124-9.
  • Hadi-Vencheh, A. (2010) ‘An improvement to multiple criteria ABC inventory classification’, European Journal of Operational Research, 201(3), pp. 962–965. doi: 10.1016/j.ejor.2009.04.013.
  • Hadi-Vencheh, A. and Mohamadghasemi, A. (2011) ‘A fuzzy AHP-DEA approach for multiple criteria ABC inventory classification’, Expert Systems with Applications. Elsevier Ltd, 38(4), pp. 3346–3352. doi: 10.1016/j.eswa.2010.08.119.
  • van Houtum, G. J. and Zijm, W. H. M. (2000) ‘On the relation between cost and service models for general inventory systems’, Statistica Neerlandica. Eindhoven Univ Technol, Fac Technol Management, NL-5600 MB Eindhoven, Netherlands Univ Twente, Fac Appl Math, NL-7500 AE Enschede, Netherlands, 54(2), pp. 127– 147. Available at: isi:000090149700003.
  • van Kampen, T. J., Akkerman, R. and Pieter van Donk, D. (2012) ‘SKU classification: a literature review and conceptual framework’, International Journal of Operations & Production Management, 32(7), pp. 850– 876. doi: 10.1108/01443571211250112.
  • Kelle, P. (1989) ‘Optimal service levels in multi-item inventory systems’, Engineering Costs and Production Economics, (15), pp. 375–379.
  • Lenard, J. D. and Roy, B. (1995) ‘Multi-item inventory control: A multicriteria view’, European Journal of Operational Research, 87(3), pp. 685–692. doi: 10.1016/0377-2217(95)00239-1.
  • Mitchell, J. C. (1988) ‘Multi-item inventory systems with a service objective’, Operations Research, 36(5), pp. 747–755.
  • Mohammaditabar, D., Hassan Ghodsypour, S. and Obrien, C. (2012) ‘Inventory control system design by integrating inventory classification and policy selection’, International Journal of Production Economics. Elsevier, 140(2), pp. 655–659. doi: 10.1016/j.ijpe.2011.03.012.
  • Molenaers, A. et al. (2012) ‘Criticality classification of spare parts: A case study’, International Journal of Production Economics. Elsevier, 140(2), pp. 570–578. doi: 10.1016/j.ijpe.2011.08.013.
  • Ng, W. L. (2007) ‘A simple classifier for multiple criteria ABC analysis’, European Journal of Operational Research, 177(1), pp. 344–353. doi: 10.1016/j. ejor.2005.11.018.
  • Odanaka, T. and Tanaka, T. (1987) ‘On ABC analysis of multiitem inventory problem’, Mathematical Modelling. Pergamon, 8, pp. 725–728. doi: 10.1016/0270- 0255(87)90678-6.
  • Ramanathan, R. (2006) ‘ABC inventory classification with multiple-criteria using weighted linear optimization’, Computers and Operations Research, 33(3), pp. 695– 700. doi: 10.1016/j.cor.2004.07.014.
  • Ramani, S. and Kutty, K. V. K. (1985) ‘Management of Multi-Item, Multi-Group Inventories With Multiple Criteria Under Service level constraints’, Engineering Costs and Production Economics, 9, pp. 59–64.
  • Rezaei, J. and Dowlatshahi, S. (2010) ‘A rule-based multi-criteria approach to inventory classification’, International Journal of Production Research, 48(23), pp. 7107–7126. doi: 10.1080/00207540903348361.
  • Roda, I. et al. (2012) ‘On the classification of spare parts with a multi-criteria perspective’, IFAC Proceedings Volumes (IFAC-PapersOnline). IFAC, 45(31), pp. 19– 24. doi: 10.3182/20121122-2-ES-4026.00020.
  • Roda, I. et al. (2014) ‘A review of multi-criteria classification of spare parts : From literature analysis to industrial evidences’, Journal of Manufacturing Technology Management, 25(4), pp. 528–549. doi: 10.1108/17410381211267682.
  • De Schrijver, S. K., Aghezzaf, E.-H. and Vanmaele, H. (2013) ‘Aggregate constrained inventory systems with independent multi-product demand: Control practices and theoretical limitations’, International Journal of Production Economics. Elsevier, 143(2), pp. 416–423. doi: 10.1016/j.ijpe.2011.08.019.
  • Silver, E. A., Pyke, D. F. and Peterson, R. (1998) Inventory Management and Production Planning and Scheduling. John Wiley & Sons.
  • Teunter, R. H., Babai, M. Z. and Syntetos, A. A. (2009) ‘ABC Classification: Service Levels and Inventory Costs’, Production and Operations Management, 19(3), pp. 343–352. doi: 10.1111/j.1937-5956.2009.01098.x.
  • Thonemann, U. W., Brown, A. O. and Hausman, W. H. (2002) ‘Easy Quantification of Improved Spare Parts Inventory Policies’, Management Science. INFORMS, 48(9), pp. 1213–1225. doi: 10.1287/mnsc.48.9.1213.173.
  • Yu, M. C. (2011) ‘Multi-criteria ABC analysis using artificial-intelligence-based classification techniques’, Expert Systems with Applications. Elsevier Ltd, 38(4), pp. 3416–3421. doi: 10.1016/j.eswa.2010.08.127.
  • Zhang, R. Q., Hopp, W. J. and Supatgiat, C. (2001) ‘Spreadsheet implementable inventory control for a distribution center’, Journal of Heuristics. Cornell Univ, Johnson Grad Sch Management, Ithaca, NY 14853 USA Northwestern Univ, Dept Ind Engn & Management Sci, Evanston, IL 60208 USA Enron Corp, Res Grp, Houston, TX 77002 USA, 7(2), pp. 185–203. doi: 10.1023/A:1009613921001.
  • Zheng, S. et al. (2017) ‘An improvement to multiple criteria ABC inventory classification using Shannon entropy’, Journal of Systems Science and Complexity, 30(4), pp. 857–865. doi: 10.1007/s11424-017-5061-8.
  • Zhou, P. and Fan, L. (2007) ‘A note on multi-criteria ABC inventory classification using weighted linear optimization’, European Journal of Operational Research, 182(3), pp. 1488–1491. doi: 10.1016/j. ejor.2006.08.052.