Article ID: | iaor199151 |
Country: | United States |
Volume: | 29 |
Start Page Number: | 6 |
End Page Number: | 8 |
Publication Date: | Dec 1988 |
Journal: | Production and Inventory Management Journal |
Authors: | Cohen Morris A., Ernst Ricardo |
Assignment of stockkeeping units into groups is an important component of inventory management. This article introduces a new method for grouping which supports modelling, strategy analysis, and control of production/inventory systems. The method can make use of any operationally important item attributes and considers both statistical and operational performance objectives. Applications demonstrate that this method dominates the ABC method.