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Analysis of Strategies to Improve Inventory Management Efficiency in the Face of Currency Devaluation and Disruptions in the Supply Chain

Author: Aleke Jude Uchechukwu1 and Echegu Darlington Arinze2
Publisher: RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT
Published: 2024
Section: College of Economics and Management

Abstract

                                 ABSTRACT

Inventory management was a crucial aspect that improves operational efficiency and ensures client satisfaction in
contemporary businesses. This study thoroughly investigates inventory management, including its theoretical
foundations, practical consequences, and current advancements. It specifically addressed the difficulties caused by
currency depreciation and interruptions in the supply chain. This paper examined the various effects of currency
devaluation and supply chain disruptions on inventory management performance by thoroughly analysing existing
literature and empirical data. It also identified important techniques for reducing the negative effects of these issues.
The study highlighted the negative impact of currency depreciation on inventory costs and profitability, particularly
for companies that significantly depend on imports. Similarly, disturbances in the distribution network, caused by
natural disasters, geopolitical instability, or pandemics, worsen the weaknesses of inventory management systems,
resulting in inefficiencies and below-optimal performance. To tackle these difficulties, the research recommends
using adaptive inventory management systems that include risk assessment models, demand forecasting approaches,
and agile replenishment strategies. Furthermore, the integration of cutting-edge technologies like artificial
intelligence and blockchain shows the potential to improve the visibility of inventories, increase the accuracy of
demand forecasts, and strengthen the resilience of the supply chain. Moreover, sustainability plays a crucial role in
inventory management techniques, providing opportunities to strengthen resilience and mitigate environmental
threats. Businesses may strengthen their supply networks and minimise the negative impacts of currency
devaluation and supply chain interruptions by adopting sustainable sourcing methods, implementing waste
reduction programmes, and using environmentally friendly transportation. This article presented a complete
methodology for enhancing inventory management efficiency in the face of currency depreciation and interruptions
in the supply chain, based on current research and industry experiences. To navigate market uncertainties, enhance
operational agility, and sustain competitiveness in the global marketplace, businesses can achieve these goals by
prioritising accurate demand forecasting, fostering collaborative relationships with suppliers, implementing
strategies for optimising inventory, and leveraging advanced technologies.
Keywords: Inventory management, Operational efficacy, Customer satisfaction, Currency depreciation, Supply
chain interruptions.