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Selection of Optimal Inventory Control Policy Using Analytic Hierarchy Process
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This paper attempts to describe the key features o f inventory control system and report a study that utilizes the analytic hierarchy process (AHP) technique to evaluate the best policy o f inventory control. The study reviews the most important criteria and sub-criteria affecting the selection of the optimal inventory control policy and determines their respective priority values imposing the AHP methodology. Five most popularly used inventory control policies are considered based on knowledge and experience and then subsequently ranked using the AHP under a multi-criteria environment. These considerations together with pair-wise comparison matrices and evaluating methodology lead to prioritize the conflicting criteria for selecting the optimal policy. Sensitivity analysis is also performed to search out the most critical and robust criteria in the inventory control policy selection problem.
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