COST REDUCTION AND ITS IMPACT ON INVENTORY MANAGEMENT

Abstract

This article discusses cost reduction and its impact on inventory management, a fundamental element for the efficient functioning of organizations. The relevance of this topic stems from the fact that inventory represents one of the largest operating costs, requiring control to avoid losses such as lost sales, delays, and downtime in the production process. Poor management can compromise competitiveness, while effective management contributes significantly to business profitability and sustainability. Therefore, the study is justified by the need to improve logistical and operational processes related to material storage and control. The research was guided by the question of how cost reduction impacts inventory management in organizations. Literature research was used as the research methodology. The general objective was to analyze how cost reduction influences inventory management. The specific objectives were to conceptualize the supply chain and materials management, identify cost containment strategies, and examine the importance of inventory in generating profits. The structure of the work comprises chapters that address everything from the supply chain to the relationship between the competitive market and maximizing business results.