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Methods for Classification of Items for Inventory Management

Association rules are used for finding associations among multi-items by mining sale transaction data. Inventory for getting better profits and to minimize inventory cost replenishment policy can be created using association rule. However finding purchase dependency is an extremely difficult task. Moreover among thousands of items available in an organization, only few catch management's close attention. It is generally observed that all items do not have same degree of control. Different methods of classification are used to classify different items. ABC classification is the most widely used technique for purpose of selective inventory control. In this paper we summarize the research done under purchase dependency and ABC classification for better inventory management and also propose a method to calculate optimal ordering policy. At the end of the paper various ways for further future research are identified.