Rationalization of processes in storage system using ABC analysis and multi-criteria decision-making
Cost rationalization has become imperative in every economic system in order to create adequate foundations for its efficient and sustainable management. Competitiveness in the global market is extremely high and it is challenging to manage business and logistics systems, especially in regards to financial parameters. The presence of inventories is inevitability in every logistics system, and it tends to create adequate policies for their efficient and sustainable management. In order to be able to do this, it is necessary to determine which products represent the largest percentage share in the value of procurement, and which are the most represented quantitatively. In this paper, the warehouse of construction material that represents the wholesale system is considered. Taking into account that it is wholesale, it is necessary to determine what the procurement costs are and what the demand is for certain products. The grouping of products into three categories A, B and C was performed, after which it is necessary to identify appropriate suppliers for each category in order to rationalize procurement costs. Financial, logistical and quality parameters are taken into account. The FUCOM method has been used to determine the significance of these parameters and ARAS method is applied for supplier evaluation and selection.