Stock management strategy

  • 1 Dimitar A. Tsenov Academy of Economics, Svishov, Bulgaria


The set of methods and rules in the process of providing raw materials can be considered a strategy for stock management. Each strategy is associated with specific and expected costs. Still, optimally, we can call that strategy that, under the given conditions, leads to minimal expenses related to the material provision of the studied system. Part of the stock management process is establishing the timing of the deliveries, the necessary volumes and the distribution of the incoming lots to the various warehouses and units. The search for optimal strategies is subject to the theory of optimal stock management. This makes it possible to release significant funds frozen in the form of stocks, which leads to increased efficiency of the material resources used. The optimal inventory management strategy and flexibility also lead to improved production processes and reduced and excluded possible interruptions caused by lack or shortage of materials. The stock management process influences the planning, forecasting, and fulfilment of production needs and orders.
The elements of the business system described so far, in which raw materials, materials and their stocks have a significant impact, show the importance of the stock management strategy of each economic unit. That the chosen and functioning system is optimal is a substantial part of the overall success in any enterprise or other form of business process implementation.



  1. Atnafu, D. Balda, A. Liu, S. The impact of inventory management practice on firms’ competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia. Cogent Business & Management. Vol. 5, Issue 1, 2018
  2. Debnath, M. Mazumder, S. Hossain, M. Garai, A. Illes, C. Optimal Base-Stock Inventory-Management Policies of Cement Retailers under Supply-Side Disruptions. Mathematics 11, 2023
  3. Elijah, Y. Ngugi, P. Inventory management strategies and performance of commercial government entities in Kenya. The strategic journal of business & change management. Vol. 8, Issue 3, 2021, pp. 87-106
  4. Matsebatlela, M. Mpofu, K. Inventory Management Framework to minimize supply and demand mismatch on a manufacturing organization. IFAC. Vol. 48, Issue 3, 2015, pp. 260-265
  5. Mazikana, A. The Impact of Inventory Management on the Overall Performance of the Organization. A Case of Halsted Builders Express. 2023. Available at SSRN:
  6. Munyaka, J. Yadavalli, V. Inventory management concepts and implementations: a systematic review. South African Journal of Industrial Engineering. Vol 33(2), 2022, pp. 15-36
  7. Li, Z. Liu, F. Qiao, K. An Effective Inventory Management Control Strategy. Advances in Intelligent and Soft Computing, vol 139. 2019, pp. 99-105
  8. Othmane, O. Jarasuniene, A. Towards an Integrated Inventory Management Process. Journal of Operations Management, Optimization and Decision Support. Vol. 2, Issue 1, 2022, pp. 36-40

Article full text

Download PDF