Work

Enhancing business efficiency through effective inventory management: a systematic literature review

Year: 2024

Type: review

Abstract: Efficient inventory management is crucial for various industries' operational performance and financial success. As market demands evolve and technological advancements progress, the complexity and importance of inventory management have increased, making it essential for maintaining a competitive advantage. This study aims to systematically review existing literature to understand the impact of inventory management practices on operational performance across different industries and contexts. Employing the PRISMA framework for systematic literature review, the Scopus database was the primary source for selecting relevant articles. The initial search yielded 791 results, refined through rigorous inclusion and exclusion criteria, ultimately resulting in the thorough analysis of 12 critical articles. This review's findings highlight that advanced inventory management systems, such as deep reinforcement learning and real-time analytics, significantly enhance operational efficiency. These systems facilitate more effective information sharing and enable tailored inventory strategies, which improve supply chain performance. This improvement is particularly evident in sectors such as healthcare and manufacturing, where precise inventory control is critical. Furthermore, financial metrics like days inventory outstanding correlate positively with firm performance, underscoring the strategic importance of inventory management in achieving financial success. The study highlights the importance of advanced inventory management practices in enhancing operational efficiency and financial performance despite high setup costs, technological complexity, and data quality issues. This study synthesizes research on inventory management practices, offering insights for businesses to enhance operational performance and emphasizes the need for continuous innovation for competitiveness.

Source: Acta Tecnología

DOI: 10.22306/atec.v10i4.224

Authors: Mohamed Farah, Ibrahim Mohamud, Mohamud Mohamed, Hassan Jakuula

Institution: SIMAD University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $339