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The IUP Journal of Mechanical Engineering
Ranking of Ordering Policies by Simple Additive Weighting (SAW) Technique for Indian Automotive Industry
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In the current scenario of high competition, there is a need for emerging approaches for inventory management. Right selection of ordering policies is one of the important processes for the development of any industry. Poor inventory management leads to retention of inventory and hence causes losses to the industry. In this paper, an analytical model has been developed for ranking of ordering policies using Simple Additive Weighting (SAW) technique. The ranking criteria are considered from the papers selected from the available literature.

 
 

Inventory is a necessity for survival of any automotive industry and consumes a significant component of sales revenue. Therefore, inventory management is one of the vital activities of automotive industry. Earlier, the purchasing personnel kept the inventory as per their experience and perception for future sales. In this modern era of globalization, this strategy is no longer competitive, and even the existence of the industry immensely depends upon the selection of right inventory policy. Hence the selection of ordering policy is emerging as a key research area in the current scenario of high competition in Indian automotive industry. As there is a high need for different ordering polices, numerous ordering policies have been developed and many are still in developing stage. Availability of various alternate ordering policies derives more uncertainty in the selection.

The selection process comprises identification of alternate ordering policies, ordering policies selection criteria, selection and evaluation of right ordering policies and rating ordering policy performance. Numerous selection criteria are related to ordering policies and influenced the ranking of the policies. Weber et al. (1991), Petrovic and Petrovic (2001) and Gupta et al. (2012 and 2013b) proposed different ordering policies selection criteria. So, selection of ordering policy may possibly be labeled as Multi-Criteria Decision Making (MCDM) problem. The selection problem becomes more complicated in the presence of uncertainty in demand and various interrelated selection criteria.

 
 

Mechanical Engineering Journal, Ordering policies, Simple Additive Weighting (SAW) technique.