A STUDY ON EFFECTIVE INVENTORY MANAGEMENT STRATEGIES FOR IMPROVING PRODUCTIVITY AND REDUCING COSTS

Abstract

Inventory management plays a crucial role in the operational efficiency and financial performance of organizations. Effective inventory management ensures the availability of the right quantity of materials at the right time while minimizing costs associated with storage, handling, and stock shortages. This study focuses on strategies that organizations adopt to reduce inventory-related costs and enhance productivity in a competitive business environment. The research examines key inventory management techniques such as Economic Order Quantity (EOQ), Just-in-Time (JIT), ABC analysis, and the use of modern inventory control systems. These methods help organizations optimize stock levels, reduce carrying and ordering costs, and improve overall supply chain efficiency. The study also highlights the role of technology, including inventory management software and data analytics, in improving accuracy, monitoring stock movement, and supporting better decision-making. Furthermore, the research analyzes how efficient inventory planning contributes to increased productivity by preventing production delays, reducing wastage, and ensuring smooth operational processes. Proper coordination between procurement, warehousing, and distribution functions is essential for achieving effective inventory control