A NEW CROSS ABC ANALYSIS PROPOSAL FOR INVENTORY CLASSIFICATION: A FABRIC WAREHOUSE CASE STUDY

Abstract

One of the most important decisions regarding warehouse management is the assignment of raw materials or products to the shelves. Effective shelf management is the key to continuity and efficiency in production. ABC analysis is one of the most preferred methods for material classification in warehouses. In this study, an enhanced cross-ABC analysis is proposed as an alternative to the traditional multi-criteria ABC analysis scoring for the assignment of raw materials to the shelves. In order to simplify the application, instead of taking into account all the criteria in the classification, it is suggested as a new approach to consider the first two criteria whose weights are the highest. Another difference is in determining the importance scores to be obtained as a result of this classification and used for the mathematical assignment model. This suggestion makes it possible to make a more detailed and homogenous scoring, different from the classical ones.