A simple classifier for multiple criteria ABC analysis

To have an efficient control of a huge amount of inventory items, traditional approach is to classify the inventory into different groups. Different inventory control policies can then applied to different groups. The well-known ABC classification is simple-to-understand and easy-to-use. However, ABC analysis is based on only single measurement such as annual dollar usage. It has been recognized that other criteria are also important in inventory classification.In the paper, we propose a simple model for multiple criteria inventory classification. The model converts all criteria measures of an inventory item into a scalar score. The classification based on the calculated scores using ABC principle is then applied. With proper transformation, we can obtain the scores of inventory items without a linear optimizer. The model can be widely applied to inventory managers with minimal backgrounds in optimization.