Author(s)

Kemal Furkan Dinçer ¹, Safiye Turgay ¹

Affiliation(s)

¹ Department of Industrial Engineering, Sakarya University, Sakarya, Turkey

Corresponding Author

Kemal Furkan Dinçer

ABSTRACT

This study delves into the critical aspect of supply chain management—optimal inventory allocation—for the fast-moving consumer goods (FMCG) industry. FMCG companies face the challenge of meeting dynamic customer demands while minimizing excess inventory costs. This abstract highlights key strategies employed by successful FMCG businesses to strike a balance between customer satisfaction and efficient inventory management. Moreover, for seasonal products, a tailored approach to inventory allocation is vital, allowing companies to adjust stock levels to match peak demand and prevent overstocking. The integration of advanced inventory management software facilitates real-time tracking, analysis, and decision-making, streamlining the inventory allocation process. By implementing these strategies and continually refining them based on real-world data, FMCG businesses can achieve optimal inventory allocation, leading to improved customer satisfaction, reduced costs, and an overall boost in supply chain efficiency. This study offers a comprehensive overview of inventory optimization techniques, aiming to assist FMCG companies in navigating the complexities of inventory management and remaining competitive in a fast-paced market.

KEYWORDS

Inventory Allocation, fast-moving consumer goods (FMCG), optimization, inventory model, deterministic approach

CITE THIS PAPER

Kemal Furkan Dinçer, Safiye Turgay, Balancing Demand and Supply: Inventory Allocation in FMCG. Industrial Engineering and Innovation Management (2023) Vol. 6: 41-49. DOI: http://dx.doi.org/10.23977/ieim.2023.061006.

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