Multi-Criteria Ranking of Inventory Ordering Policies using Fuzzy Based-Distance Based Approach for Indian Automotive Industry

Gupta Amit*, Garg R.K.**, Tewari P.C.***
* Department of Mechanical Engineering, National Institute of Technology, Kurukshetra, Haryana, India.
** Department of Mechanical Engineering, DCR University of Science and Technology, Murthal, Sonepat, Haryana, India.
*** Department of Mechanical Engineering, National Institute of Technology, Kurukshetra, Haryana, India.
Periodicity:June - August'2013
DOI : https://doi.org/10.26634/jmgt.8.1.2379

Abstract

In current scenario of globalization, the organizations are facing the difficulty of proper selection of manufacturing processes, purchasing strategies, process and product design, equipment, machineries and tools to meet the tough challenges of global competition. With the emphasis on quality improvement concepts and wide use of enterprise systems, the managers try to go beyond the conventional boundaries of money and material and also try to explore the vast new universe of possibilities. Proper evaluation and selection of inventory policies is very crucial for the progress and development of any industry. In this paper, we proposed a framework for ranking of inventory policies based on expert opinion elicitation and fuzzy-based Distance Based Approach (DBA) methodology. The conventional method is not self-reliant to integrate the uncertainty of the real problem. The ranking criteria e.g. Unit Cost, Holding Cost, Purchasing Cost, Shortage Cost, Demand, Reorder Level, Lead Time and Review Period which are most relevant to selection of inventory policy have been selected after exhaustive study of available literature. Based on the expert opinion in concurrence with selection criterion, inventory policies are evaluated and ranked using DBA technique

Keywords

Ranking, Fuzzy Logic, DBA, Composite Distance

How to Cite this Article?

Gupta Amit, Garg R.K. and Tewari P.C. (2013). Multi-Criteria Ranking of Inventory Ordering Policies Using Fuzzy Based-Distance Based Approach For Indian Automotive Industry. i-manager’s Journal on Management, 8(1), 41-48. https://doi.org/10.26634/jmgt.8.1.2379

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