2025, Vol. 6, Issue 2, Part M

Inventory management is a critical component of supply chain efficiency, directly influencing cost reduction, customer satisfaction, and operational flexibility. The primary objective of this study is to evaluate how modern inventory management practices particularly Vendor Managed Inventory (VMI), Just-in-Time (JIT), and Economic Order Quantity (EOQ) contribute to improving supply chain performance. The methodology is based on secondary research, industry reports, and real-world case studies. The approach highlights different inventory management practices and their impact on supply chain efficiency. Inventory management is not limited to cost control but it also plays a key role in making a supply chain stronger and more competitive. Organizations that adopt advanced inventory management systems and tools achieve higher efficiency, better integration, and long-term sustainability.
The results demonstrate that efficient inventory control minimizes stockouts, guarantees optimal resource utilization, and lowers holding and ordering costs. Methods like VMI enhance supplier-buyer collaboration, JIT reduce lead times and wastage, and EOQ provide a systematic approach to balancing supply and demand. When used together, these methods make supply and demand more balanced, improve overall efficiency and keep the whole supply chain better connected. The findings suggest that investment in inventory technologies and forecasting models is essential to building resilient supply chains.