STREAMLINING INVENTORY-DISTRIBUTION DYNAMICS: AN INTEGRATED FRAMEWORK

Abstract

This study delves into an integrated approach to inventory management, shedding light on various inventory management technologies applicable across different industries and distribution systems. The overarching goal is to attain a competitive edge by reducing costs and enhancing service quality. It underscores the significant impact of total logistics costs, encompassing transportation, facility, and inventory expenses, on a company's competitiveness. By harmonizing inventory and distribution policy decisions, businesses can streamline costs and enhance their ability to respond effectively to market demands. The effectiveness of this integration is illustrated through a practical example involving a scenario of single supply and multiple demands. Moreover, the study examines the pivotal role of Vendor Managed Inventory in optimizing inventory management throughout the supply chain. Additionally, it explores the utilization of the Traveling Salesman Problem to streamline transportation expenses. Through the adoption of this integrated approach, organizations can realize cost efficiencies and bolster their responsiveness, ultimately strengthening their competitive position within the industry.