Significance and Value Orientation on Effective Inventory Management in the Automotive Industry in Indian Context

Abstract

Effective inventory management plays a crucial role in the automotive industry, especially in the dynamic market landscape of India. This study examines the importance and value orientation associated with effective inventory management practices in the Indian automobile sector. Through a comprehensive literature review and empirical analysis, this study identifies key factors that influence inventory management effectiveness, including supply chain dynamics, demand variability, and operational efficiency. Furthermore, it explores the value orientation of inventory management strategies, considering cost minimisation, customer service enhancement, and risk mitigation. Effective inventory management is a critical determinant of operational efficiency and competitiveness within the automotive industry, particularly in the context of India’s dynamic market environment. This research delves into the significance and value orientation underlying effective inventory management practices within the Indian automotive sector, drawing upon theoretical frameworks from operations management and supply chain literature. Through a comprehensive review of existing theories and empirical analysis, this study identifies key theoretical constructs shaping inventory management effectiveness, including the Bullwhip Effect, Economic Order Quantity (EOQ) model, and Just-in-Time (JIT) principles. Moreover, it examines the value orientation inherent in inventory management strategies, encompassing cost minimisation theories, service level optimisation models, and risk management frameworks. Furthermore, it explores the value orientation of inventory management strategies, considering cost minimisation, customer service enhancement, and risk mitigation. The findings suggest that a balanced approach, aligning with the unique characteristics of the Indian automotive industry, is crucial for achieving optimal inventory management outcomes. By synthesising theoretical insights with empirical findings, this research contributes to a deeper understanding of the theoretical underpinnings driving effective inventory management practices in the Indian automotive industry. Practical implications and theoretical extensions are discussed to guide future research endeavours and inform managerial decision-making aimed at enhancing inventory management effectiveness in this context.

Keywords: Effective Inventory Management, Automotive Industry, Value Orientation, Service Level Optimisation Models, Theoretical Underpinnings

View PDF