Inventory Management Practices in Supply Chain Management: A Case Study on “Aluminium Industries of Bangladesh.”

Abstract

This thesis report investigates the “Inventory Management Practices in Supply Chain Management: A Case Study on “Aluminium Industries of Bangladesh.” aiming to assess their impact on operational efficiency, cost management, and customer satisfaction. As the demand for aluminum continues to grow, driven by its versatility and application in sectors like construction and manufacturing, effective inventory management has become crucial for maintaining competitiveness in this dynamic market. The study begins with an exploration of the theoretical framework surrounding inventory management and supply chain management, referencing key concepts from established literature, including strategies such as Just-In-Time (JIT), Economic Order Quantity (EOQ), and safety stock management. The research methodology involves a case study approach, focusing on selected aluminum companies in Bangladesh. Data was collected through interviews with industry professionals and analysis of inventory records and performance metrics. Key findings reveal that while many aluminum companies have implemented basic inventory management practices, significant challenges persist, including demand variability, supply chain disruptions, and rising raw material costs. These factors often lead to inefficiencies, such as excess inventory and stockouts, which adversely affect customer satisfaction and profitability. The study highlights several opportunities for optimization within the inventory management processes of the aluminum industry. Recommendations include the adoption of advanced forecasting techniques, improved supplier relationships, and the integration of technology to enhance visibility and control over inventory levels. Additionally, the research suggests that developing a robust inventory management framework tailored to the specific needs of the aluminum sector can lead to substantial improvements in supply chain performance. Ultimately, this thesis aims to provide valuable insights and actionable recommendations for industry stakeholders, helping them navigate the complexities of inventory management in the aluminum industry and enhancing their overall operational efficiency. The findings contribute to a better understanding of the critical role inventory management plays in sustaining the growth and competitiveness of the aluminum sector in Bangladesh.