Abstract
The paper presents two methods for ABC classification of stock keeping units (SKUs), The first method is to apply principal components analysis (PCA) to classify inventory. The second method combines PCA with artificial neural networks (ANNs) with BP algorithm. The reliability of the models is tested by comparing their classification ability with a data set. The results show that the hybrid method could not only overcome the shortcomings of input limitation in ANNs, but also further improve the prediction accuracy.
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Cohen, M.A., Ernst, R.: Multi-item Classification and Generic Inventory Stock Control Policies. Production and Inventory Management Journal 29, 6–8 (1988)
Flores, B.E., Whybark, D.C.: Mutiple Criteria ABC Analysis. Journal of Operations Management 6, 38–45 (1986)
Flores, B.E., Whybark, D.C.: Implementing Multiple Criteria ABC Analysis. Journal of Operations Management 7, 79–84 (1987)
Gajpal, P.P., Ganesh, L.S., Rajendram, C.: Criticality Analysis of Spare Parts Using the Analytic Hierarchy Process. International J. of Production Economics 35, 293–297 (1994)
Guvenir, H.A., Erel, E.: Multicriteria Inventory Classification Using A Genetic Algorithm. European Journal of Operational Research 105, 29–37 (1998)
Joliffe, I.T.: Principal Component Analysis. Springer, New York (2002)
Partovi, F.Y., Burton, J.: Using the Analytic Hierarchy Process for ABC Analysis. International Journal of Production and Operations Management 13, 29–44 (1993)
Partovi, F.Y., Hopton, W.E.: The Analytic Hierarchy Process As Applied to Two Types of Inventory Problems. Production and Inventory Management Journal 35, 13–19 (1994)
Partovi, F.Y., Anandarajan, M.: Classifying Inventory Using An Artificial Neural Network Approach. Computers and Industrial Engineering 41, 389–404 (2002)
Saaty, T.L.: The Analytic Hierarchy Process. McGraw-Hill, New York (1980)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Lei, Q., Chen, J., Zhou, Q. (2005). Multiple Criteria Inventory Classification Based on Principal Components Analysis and Neural Network. In: Wang, J., Liao, XF., Yi, Z. (eds) Advances in Neural Networks – ISNN 2005. ISNN 2005. Lecture Notes in Computer Science, vol 3498. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11427469_168
Download citation
DOI: https://doi.org/10.1007/11427469_168
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-25914-5
Online ISBN: 978-3-540-32069-2
eBook Packages: Computer ScienceComputer Science (R0)