A conceptual technique of procurement prioritisation a hybrid approach

Abstract

Priority fixing on material procurement to maintain an optimal inventory level is a tedious job. On many occasions, the procurement managers follow sequence of indents of materials received from different departments to build up inventory. The aim of this paper is to develop a material procurement sequencing technique with a hybrid approach. The concept has been derived from hybridisation/inter-mixing of 03-popular inventory categorisation techniques, viz. VED analysis, FSN analysis and ABC analysis. Impact values were assigned to different categories of material and their cumulative impacts were used to arrive at the sequencing trend of materials to be procured. Implementation of this technique can ease procurement managers' decision making on procuring material in a sequence. Development of this concept paper is based on practical approach which can be helpful in optimal inventory management of any company. A basic approach is explained in this paper that can be implemented in various industries with little or more changes on impact value scales assignment keeping the approach intact.