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Inventory is a necessity for survival of any automotive industry and consumes a
significant component of sales revenue. Therefore, inventory management is one of
the vital activities of automotive industry. Earlier, the purchasing personnel kept the
inventory as per their experience and perception for future sales. In this modern era
of globalization, this strategy is no longer competitive, and even the existence of the
industry immensely depends upon the selection of right inventory policy. Hence the
selection of ordering policy is emerging as a key research area in the current scenario
of high competition in Indian automotive industry. As there is a high need for different
ordering polices, numerous ordering policies have been developed and many are
still in developing stage. Availability of various alternate ordering policies derives
more uncertainty in the selection.
The selection process comprises identification of alternate ordering policies,
ordering policies selection criteria, selection and evaluation of right ordering policies
and rating ordering policy performance. Numerous selection criteria are related to
ordering policies and influenced the ranking of the policies. Weber et al. (1991), Petrovic and Petrovic (2001) and Gupta et al. (2012 and 2013b) proposed different
ordering policies selection criteria. So, selection of ordering policy may possibly be
labeled as Multi-Criteria Decision Making (MCDM) problem. The selection problem
becomes more complicated in the presence of uncertainty in demand and various
interrelated selection criteria.
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