STUDY ON INVENTORY MANAGEMENT PRACTICES AND OPTIMIZATION

Abstract

Efficient inventory management is the key to an organization’s success. It is one one of the most important factors determining the organization's health and growth. This research aims at studying and identifying the condition and state of inventory management in today's businesses and organizations, the various challenges and obstacles that they face and the methods and ways that they follow for improvements. Efficient inventory management is also crucial because it has direct influence on forecasting customer demands and also controlling or optimizing costs at the same time. It helps maintain operational costs and also enhance customer satisfaction and also improve the profits of the company. In this survey, a sample of 100 volunteers were selected randomly. A standard questionnaire was developed which has been the backbone and the major data source for the research. The study also involves qualitative as well as quantitative research. It was further observed that the respondents were in favor of the processes involved in inventory monitoring, demand forecasting and allocation as well as the various technologies and solutions available in inventory management. But it was also observed that predicting future demand accurately and lack of effective communications are some of the major failures and loopholes existing in the system. The findings of the research are also very crucial and it includes a whole range of inventory management techniques. Use of advanced technologies, dealing with communication problems, better methods to accurately predict or forecast demand and a strong. understanding and collaboration among the various departments of the organization can play a crucial role and also achieve several advantages like better inventory management, optimal allocation of resources and also achieving cost reduction. The study also helps us understand for the regular performance failures. It helps us explore the realities. It gives and insight into the importance of creativity and the need for managing the inventory efficiently because in today's business scenario dynamism is the key which can be utilized by the organization to excel in the areas of operational excellence.