Sorting Products using the ABC-SWARA Model

Inventory management has become one of most important tasks and goals of logistics. For this reason, this paper conducts product grouping and examines its impact on company’s performance. Each company uses special model and tactics for managing and optimizing inventory, as well as using its own way of controlling current state of inventory. However, it is necessary to apply model that will include several factors and give the best possible results. To ensure final results are as reliable as possible, the SWARA method and ABC analysis were applied. The SWARA method was used to define weighting coefficients of criteria related to Electrolux appliances sold by the company "Mepromex". Determining weights of the criteria using the SWARA method involves three main criteria: unit price, quantity and annual procurement value. These three criteria play a crucial role in the final product sorting, i.e., in the ABC analysis. The applied ABC-SWARA model shows that out of a total of 93 products, Group A consists of 17 products, which require the most attention due to their highest values. Group B consists of 31 products, while Group C consists of 45 products, which have the lowest values. Sensitivity analysis was performed using the ABC-FUCOM model and it can be seen that the products are grouped almost identically as in SWARA-ABC. Group A consists of 19 products, which require the most attention due to their highest values. Group B includes 31 products, while Group C consists of 43 products, which are those with the lowest values.