Inventory Management and Its Influence on the Supply of High-Value Products: Case Study Evidence

Ângela Silva (), Márcia Silva and Ana Cristina Ferreira
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Ângela Silva: Department of Production and Systems, University of Minho, 4804-533 Guimarães, Portugal
Márcia Silva: Department of Production and Systems, University of Minho, 4804-533 Guimarães, Portugal
Ana Cristina Ferreira: COMEGI—Centro de Investigação em Organizações, Mercados e Gestão Industrial, Faculdade de Engenharias e Tecnologias, Universidade Lusíada de Vila Nova de Famalicão, 1349-001 Lisboa, Portugal

Logistics, 2025, vol. 9, issue 4, 1-19

Abstract: Background : In the context of increasing supply chain complexity, efficient inventory management has become important in enhancing the performance of logistics systems and sustaining the competitiveness of companies. Real-time visibility, tracking, and control over stock levels ensure responsiveness, reduce waste, and support strategic decision-making. Decision support systems that integrate demand analysis with inventory policies play a pivotal role in improving operational efficiency. This paper addresses the need for more efficient stock management to optimize purchasing and inventory costs within a manufacturing environment. Methods : Production planning processes were analyzed to determine material requirements, and a representative product was selected. The study involved ABC classification based on the average annual stock value of purchased parts, complemented by an XYZ analysis to evaluate demand variability. Afterwards, stock management policies were tested, namely, continuous and periodic review models. Each item was assessed to determine the most suitable inventory management method based on its consumption profile. Results : A comparison with the company’s existing approach revealed that for 9 out of the 13 materials studied, the application of stock management models led to improvements. Conclusions : The results show a potential cost reduction of 33% for the nine materials to which stock policies were successfully applied.

Keywords: logistics; decision support systems; ABC/XYZ analysis; inventory management and optimization (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2025
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