A NEW APPROACH OF INVENTORY CLASSIFICATION WITH LOSS RULE
Moden production planning and inventory control has been developed in order to treat more pactical and more complicated circumctances. Such as researching supply chain instead single stock point ; multi-items with correlation instead single item and so on. In this paper, how to classify inventory items which are correlated each other is discussed by using the concept of ‘cross-selling effect. In history, the ABC classification is usually used for inventory items aggregation because the number of inventory items is so large that it is not computationally feasible to set stock and service control guidelines for each individual item. A fundamental principle in ABC classification is that ranking all inventory items with respect to a notion of profit based on historical transactions. The difficulty is that the profit of one item not only comes from its own sales, but also from its influence on the sales of other items, i.e., the ‘cross-selling effect. We have developed a classification approach of inventories by using the assosiation rules to deal with the ‘crossselling effect and proposed that a very diffirent ranking of inventory items can be obtained comparing to tridational ABC classification. However, the ‘cross-selling effect may be considered into difirent way. In this paper, a new consideration of inventory classification with loss rule is presented. Loss rule presents the loss in profit for items if some other items were not considered which have ‘cross-selling effect with them. Then a new ranking criterion is generated by using the loss rule. A numeral example is used to explain the new algorithm and empirical experiments are implemented to evaluate its effectiveness and utility. Also a comparison study on the developed classification approaches of inventories is provided.
Inventory Classification Ranking Loss Rule Cross-selling Effect.
Ikou Kaku Xuezhi Chen Renqian Zhang Yiyong Xiao
Department of Management Science and Engineering, Akita Prefectural University, Yulihonjo, 015-0055, School of Economics and Management, Beihang University, Beijing, 100083, China Department of Engineering and System Engineering, Beihang University, Beijing, 100083, China
国际会议
上海
英文
1-6
2009-08-02（万方平台首次上网日期，不代表论文的发表时间）