The Factors Influencing Effective Inventory Management: A Supply Chain Perspective

Abstract

Inventory management is an important part of supply chain management which is implement and control the flow of goods and services in both forward and reverse integration of supply chain information. The scope of inventory management concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space, quality management, replenishment, returns and defective goods, and demand forecasting. The data collected through questionnaire from manufacturing and service industries mainly food and textile industries. The analysis is done with the help of SPSS. The results showed that demand forecasting, lead replenishment, order fulfillment, production, customer satisfaction, transportation cost, inventory purchasing and inventory level are all equally effective for inventory management. All hypotheses are accepted in this research.