Research Article

Improving Distributed Decision Making in Inventory Management: A Combined ABC-AHP Approach Supported by Teamwork

Table 8

Application of step 3 of the methodology (identification of criteria).

Criteria (step 3)Unit cost: it is the acquisition cost of the inventory item measured in $/unit.
Lead time: it is the time that elapses from when a purchase order is issued to the supplier until it is available to be delivered to the production area. It is measured in days.
Rotation: it is the number of times that an item of the inventory has been renewed in a period of time and is measured in number of times per year.