Use of the AHP Method to Evaluate Key Inventory Control Indicators: Case Study of a Taiwanese Manufacturer in China

Control of inventory is a crucial management task that can affect a company\u27s success and survival, and good inventory control offers many benefits. In this paper, the Analytic Hierarchy Process (AHP) method is used to investigate key inventory indicators at a manufacturer and obtained an initial set of factors influencing inventory control, including five major assessment dimensions and 15 assessment criteria. "Rolling customer demand forecast accuracy" was a key assessment dimension that can be used to evaluate the case company\u27s inventory. The five most important key inventory control indicators consisted of "forecasting accuracy," "purchases in China," "production, sale, and inventory (PSI) meeting," "skilled worker turnover rate," and "major changes in market demand." In addition, these key indicators are discussed and some practical recommendations are made

Key Factors to Increasing Free Cash Flow for Manufacturers Utilizing Lean Production: An AHP-DEMATEL Approach

This paper aims to apply AHP and DEMATEL to analyze the key factors and interrelationships of lean production to increase free cash flow for manufacturers. The AHP hierarchy was determined through literature and interviews with leading management experts. The assessment criteria were categorized into five major criteria and 15 sub-criteria, including production, sales, human resources, R&D, and finance. According to the AHP results, the first eight key factors were identified as the key factors to increasing cash flow for manufacturers who utilized lean production. DEMATEL was used to identify the interactions among the eight key factors and further identify the four more important ones. The four key factors are strategic planning, strategic deployment, leadership, and goal orientation. This paper proposes management implications and improvement suggestions for the four key factors and their interactions