An integrated fuzzy approach for classifying slow-moving items

Abstract

Purpose The purpose of this paper is to propose a new integrated method for evaluating inventory of slow-moving items by introducing the application of fuzzy AHP method with interval Type-2 fuzzy sets (IT2FSs) and ABC analysis. Design/methodology/approach In the study, fuzzy analytic hierarchy process (AHP) method with IT2FSs is employed to set the importance of criteria. The weights obtained from IT2 fuzzy AHP are used to classify slow-moving items in ABC analysis. In the application part, a real-life case study is presented. Findings The result of this study indicates that an integrated approach utilizing IT2 fuzzy AHP and ABC analysis can be used as a supportive tool for classification of slow-moving items. The problem is solved under fuzzy environment to handle uncertainties and lack of information about slow-moving items. Practical implications Actual data are provided from an automotive company for prioritizing a various criteria to evaluate and classify stocks and a hypothetical model integrated with IT2 fuzzy AHP and ABC analysis is demonstrated. Originality/value Apart from inventory classification literature, the study integrates fuzzy AHP method by employing interval IT2FSs and ABC analysis to solve the real-life inventory classification problem.