Multi-Criteria Inventory Classification Using a New Method of Evaluation Based on Distance from Average Solution (EDAS)

An effective way for managing and controlling a large number of inventory items or stock keeping units (SKUs) is the inventory classification. Traditional ABC analysis which based on only a single criterion is commonly used for classification of SKUs. However, we should consider inventory classification as a multi-criteria problem in practice. In this study, a new method of Evaluation based on Distance from Average Solution (EDAS) is introduced for multi-criteria inventory classification (MCIC) problems. In the proposed method, we use positive and negative distances from the average solution for appraising alternatives (SKUs). To represent performance of the proposed method in MCIC problems, we use a common…