Towards an integrated inventory management process

Abstract

The most serious inventory management problems are related to poor inventory management – stock shortages or surpluses. Too much inventory reduces competitiveness, increases goods depreciation and ultimately natural losses. A very important aspect is the loss of sales due to a shortage of goods, although this is much less felt and therefore much less analyzed. The aim of the study is to identify the main problems of inventory management in distribution companies and provide possible solutions to these problems. The paper analyzes problematic aspects of inventory management processes, highlighting the advantages and disadvantages of the major applicable inventory management models used. A qualitative study (experts survey) was also conducted and an integrated inventory management model called “Min-Max” was developed to address problem questions of inventory management. The essence of this model is to integrate and present principles and methodologies for managing inventories to maintain optimal levels of goods in distribution companies.