A multi-criterion focus for decision-making in inventory management

Abstract

An efficient inventory control system does not treat all items in stock in the same way, but applies methods of control and analysis corresponding to the relative economic importance of each product. This gives rise to a question: "How do we classify products in stock with an effective and efficient impact on business management?" It is becoming general practice to differentiate stock management with dependence on the characteristics of articles in which it is composed, and in literature reviewed, a recommendation for ABC methods of classification based on a quantitative variable or parameter. This article presents and applies two alternative approaches to two Cuban organisations (multi-criteria for the application of the ABC method, and the acquisition/rotation index matrix), in order to classify products in stock, and to support efficient, customer-oriented supply management.