Introducing a Conceptual Model for Inventory Classification using ABC-Fuzzy Approach (Case of Hamoon Manufacturing Firm)

Inventories may generally be clustered into two categories including items of small quantities of high value against items of low value and high quantity. In other words, a few numbers of inventory items in manufacturing firms usually account for a great value of inventory while the remaining items, though large in numbers, normally take a little value of total inventory. Therefore, as literature suggests, having identical inventory control system for all items in store is not considered as an optimum decision. ABC inventory control system suggests that, materials and manufacturing parts and components of higher cost need more attention than those of lower cost In this study, based on ABC inventory system, 77 inventory items from a regional manufacturing firm were originally classified into three categories consisting of 11, 16 and 50 items representing A, B and C classes respectively. Then, on the basis of scarcity, criticality, and firms consumptions of each item, ABC inventory system and Fuzzy classification were once again classified. The output of the combined method placed 14, 20 and 43 items in classes A, B, and C respectively.