Using CCM Algorithm to Solve Nonlinear Program in Multiple Criteria Inventory Management

• Main Authors: Pei-ShanHsin, 辛佩珊
• Other Authors: Pei-Chun Lin
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/74011471558166591153

碩士 === 國立成功大學 === 交通管理學系碩博士班 === 100 === As the varieties of goods have increased to meet the demands of an uncertain market, inventory management has been gradually gaining in importance in recent years. ABC principle is the traditional way dealing with inventory management which classify all the items (SKUs) into three categories based on their valuation. In the past the sole criterion, Annual Dollar Usage (ADU) has been viewed as the only way to value SKUs; however, lots of scholars revealed that only one criterion would be insufficient, multiple criteria should be taken into account when tackling inventory classification. There were plenty of solutions to the issue of multiple inventory management problem; but they somewhat have some drawbacks as including too much subjectivity or being complicated. This study aims to provide a nonlinear solution accompany with an efficient algorithm called CCM for solving the problem. A nonlinear formula weighted product model (WPM) is adopted in this thesis; furthermore, a powerful and efficient algorithm CCM helps ease difficulty of using nonlinear model. The combination of WPM and CCM offers good result of inventory management which better represents importance of each SKUs. The final part of this thesis will compare results of different methods dealing with the same exemplification of multiple criteria inventory management.