Cross-evaluation-based weighted linear optimization for multi-criteria ABC inventory classification

Multi-criteria ABC inventory classification (MCIC), which aims to classify inventory items by considering more than one criterion, is one of the most widely employed techniques for inventory control. This paper suggests a cross-evaluation-based weighted linear optimization (CE-WLO) model for MCIC that incorporates a cross-efficiency evaluation method into a weighted linear optimization model for finer classification (or ranking) of inventory items. The present study demonstrated the inventory-management-cost effectiveness and advantages of the proposed model using a simulation technique to conduct a comparative experiment with the previous, related investigations. We established that the proposed model enables more accurate classification of inventory items and better inventory management cost effectiveness for MCIC, specifically by mitigating the adverse effect of flexibility in the choice of weights and yielding a unique ordering of inventory items.