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

Aleke Jude Uchechukwu¹ and Echegu Darlington Arinze²

¹Faculty of Economics Kampala International University Uganda.

²The School of Mathematics and Computing, Kampala International University Uganda

Corresponding Author: jude.aleke@kiu.ac.ug

https://orcid.org/0009-0009-6807-9484

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.

CITE AS: Aleke Jude Uchechukwu and Echegu Darlington Arinze (2024). Analysis of Strategies to Improve Inventory Management Efficiency in the Face of Currency Devaluation and Disruptions in the Supply Chain. RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT 3(3):1-5.