INVENTORY MANAGEMENT STRATEGIES AND THEIR IMPACT ON COMPANY PERFORMANCE
Keywords:
Inventory Management, Just-in-Time, ABC Analysis, EOQ, Vendor-Managed Inventory, Supply Chain, Company Performance, Operational EfficiencyAbstract
Inventory management is a cornerstone of operational excellence and financial
performance across all industries. This article provides a comprehensive examination
of the principal inventory management strategies, including Just-in-Time (JIT), ABC
Analysis, Economic Order Quantity (EOQ), Vendor-Managed Inventory (VMI), and
emerging technology-driven approaches and analyses their measurable impact on
company performance. Drawing on peer-reviewed studies, industry benchmarks, and
real-world case studies, the article demonstrates how effective inventory management
reduces costs, improves profitability, and enhances supply chain resilience. With
global inventory distortion costing businesses an estimated $1.6 trillion annually, the
urgency of adopting optimized inventory strategies has never been greater. The article
concludes with a comparative framework and strategic recommendations for
businesses seeking to align their inventory practices with long-term performance goals.
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