A STUDY ON IMPACT OF INVENTORY MANAGEMENT ON COST REDUCTION AND PROFITABILITY AT FOOD PROCESSING INDUSTRY

The study concludes that effective inventory management plays a significant role in reducing operational costs and improving profitability in the food processing industry. The findings indicate that maintaining optimum inventory levels, adopting efficient inventory control techniques, and regularly monitoring inventory help minimize storage costs, reduce material wastage, improve inventory turnover, and ensure uninterrupted production. The statistical analysis confirmed a strong positive relationship between inventory management, cost reduction, and profitability, demonstrating that efficient inventory practices contribute significantly to organizational performance and financial success. The study further highlights that inventory management should be viewed as a strategic business function rather than merely a stock control activity. Food processing organizations should continuously strengthen their inventory management systems by adopting modern inventory control techniques, utilizing digital inventory management technologies, improving demand forecasting, and enhancing supplier coordination. Such initiatives will enable organizations to optimize resource utilization, improve cash flow, reduce operational risks, enhance customer satisfaction, and achieve sustainable profitability. Therefore, investing in effective inventory management practices is essential for maintaining operational excellence and ensuring long-term competitiveness in the food processing industry.

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