Inventory Classification Using Fuzzy Approach

Inventory Analysis and Control has become inevitable for a manufacturing industry. Among the various items of inventory not all are of equal importance and therefore decisions as to when and how many to buy or make can be taken by classifying the inventory items based on values. For this evaluation, ABC inventory classification which is one of the most commonly used approaches is considered. The data is taken from the manufacturing sector of Usha Martin Ltd, a leading manufacturer of wire strands located in Jharkhand. Through this paper an attempt is made to use fuzzy membership degrees in segregating the inventory into various classes based on the valuation of the items. This would therefore provide useful insights to the company for proper maintenance of their inventory stock based on the importance of the items.