Author(s) :

Dhirendra Kumar.

Volume/Issue :

Abstract :

Inventory management plays a critical role in enhancing business profitability by ensuring that companies maintain an optimal balance between supply and demand. Efficient inventory practices help businesses reduce holding costs, minimize stockouts, and avoid overstocking, all of which can lead to significant cost savings. Proper management also enables companies to streamline their operations, improve customer satisfaction, and respond more effectively to market trends and shifts in consumer behavior. The use of modern technologies, such as inventory management systems (IMS) and data analytics, has further revolutionized the way businesses track and manage their stock levels. These tools provide real-time data, allowing businesses to forecast demand more accurately and make informed decisions on procurement, storage, and distribution. On the other hand, poor inventory management can result in lost sales, excess inventory, and a weakened cash flow, which directly impacts profitability. By adopting best practices in inventory management, businesses can optimize their operational efficiency, reduce waste, and create a competitive advantage in the marketplace, ultimately leading to improved profitability. This paper explores the influence of inventory management on profitability, analyzing various strategies and tools that businesses can employ to enhance their inventory systems and drive sustainable financial growth.

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