Inventory Management in Private Merchandising Business: Bridging Identified Gaps Through Cost-Efficiency Framework

Abstract

This study examined inventory management practices in a private hard-discount merchandising business and developed an integrated framework for improving operational efficiency and cost efficiency. A mixed-methods design combined a structured employee survey with qualitative accounts of inventory and supply-chain practices. Quantitative analysis assessed real-time data and tracking, predictive modeling for demand forecasting, and sustainability and cost reduction, while qualitative thematic analysis examined waste reduction, continuous improvement, demand-pull practices, and supplier integration. The reported results show consistently high assessments of the three data-driven inventory dimensions. Predictive modeling was the strongest reported predictor of inventory management performance, followed by sustainability and cost reduction and real-time data and tracking. Qualitative findings indicate that waste reduction and continuous improvement were practiced but remained largely manual and reactive, while supplier coordination was often informal and vulnerable to delays. The study proposes an Integrated Smart Inventory Management Framework that combines data-driven inventory optimization with lean supply-chain practices to support proactive replenishment, waste reduction, supplier coordination, and long-term cost efficiency.