Rough-Set Multiple-Criteria ABC Analysis

Multiple-criteria ABC (MCABC) analysis is conducted using a dominance-based rough set approach. ABC analysis, a well-known technique for inventory planning and control, divides stock-keeping units (SKUs) into three classes according to annual dollar usage. But MCABC analysis offers more managerial flexibility by including other criteria, such as lead time and criticality, in the classification of SKUs. The objective of this paper is to propose an MCABC method that uses the dominance-based rough set approach to generate linguistic rules that represent a decision-maker’s preferences based on the classification of a test data set. These linguistic rules are then used to classify all SKUs. A case study demonstrates that the procedure is feasible.