Optimization of Inventory Management for Effective Supply Chain for Cost Reduction

Optimization of Inventory Management for Effective Supply Chain for Cost Reduction

Dr. Shetty Deepa Thangam Geeta, Assistant Professor, School of management studies , Sathyabama institute of science and technology.

Sumathi k, MBA ,School of management studies, sathyabama institute of science and technology.

ABSTRACT

Optimizing inventory management is crucial for enhancing supply chain efficiency and achieving cost reduction. By leveraging real-time data analytics and demand forecasting, businesses can minimize stockouts and overstocking. Implementing just-in-time (JIT) inventory systems reduces holding costs and improves cash flow. Automation and integrated inventory software enhance visibility and streamline operations. Strategic supplier partnerships support lean inventory practices and improve replenishment cycles. Efficient inventory turnover leads to lower warehousing costs and increased responsiveness. Risk mitigation strategies further ensure supply chain resilience. Overall, optimized inventory management drives profitability and customer satisfaction.

KEYWORDS
Inventory Optimization , Supply Chain Management, Cost Reduction, Demand Forecasting, Just- In-Time (JIT), Inventory Turnover, Lean Inventory