Azim Mohammad, Shibbir Ahmad, Mohammad Iqbal, Md. Alauddin 

(Shah Jalal University of Science and Technology, Sylhet-3114, Bangladesh)

 

 

Abstract: Companies today must be fast and nimble enough to react quickly to changes in customer demand and do it with little inventory. Gone are the days when manufacturers could stockpile large quantities of raw materials; load-up the shop floor with work-in-process; and, pack warehouses with finished goods. The old ways cost too much, require too much working capital, and contribute to erratic and longer lead times. Inventory management includes a company’s activities to acquire, dispose, and control of inventories that are necessary for the attainment of a company’s objectives. The management of inventories concerns the flow to, within, and from the company and the balance between shortages and excesses in an uncertain environment. The evidence suggests that the stock market partially anticipates excess inventory situations, firms do not recover quickly from the negative effect of excess inventory, and the negative effect of excess inventory is economically and statistically significant. In this research, after implementing inventory management tools, 25% profit has been increased.

 

 

Key words: inventory management; inventory reduction; cost; profit; smooth operation

 

JEL code: L