Inventory Management Optimization to Improve Supply Chain Performance of Kanchipuram Besmak Components Pvt Ltd at Chennai

Abstract

This study examines inventory management optimization and its impact on supply chain performance across selected manufacturing and retail organizations over a five-year period from 2021 to 2025. Utilizing tools such as Economic Order Quantity (EOQ) analysis, ABC classification, inventory turnover ratio, and demand forecasting models, the research evaluates key dimensions including holding cost reduction, stockout minimization, and order cycle efficiency. The findings indicate that organizations implementing structured inventory optimization strategies achieved a significant reduction in carrying costs and improved order fulfillment rates. However, challenges such as demand variability, supplier lead time inconsistencies, and inadequate technology adoption continue to hinder optimal performance. The study concludes that effective inventory management, when integrated with strategic supply chain planning, leads to measurable improvements in operational efficiency, customer satisfaction, and overall profitability.