Cost reduction and its impact on inventory management: The path chosen to reduce costs can lead to losses. Defining strategies eliminates risks

This work describes the general context of stock management and its purpose within an organisation. Its aim is to demonstrate, through exploratory research, how the system for storing materials, whether raw materials, products in process or finished products, works. Describe the concepts of stock management with a focus on reducing the costs of materials classified as excess. Based on the methods described, propose a simple vision of good stock management The research was based on a wide-ranging literature review used to prepare this monograph. Various sources were consulted, from books to academic papers on the subject. To clarify the costs related to replacing materials and the costs of storing them, with a focus on low-consumption items. A case study was carried out in a company that uses the methods studied and manages them on a day-to-day basis, which in turn have a negative impact on the company's results. Finally, to propose good management of the resources used in materials management through the methods studied, which boost results and demonstrate the real gains the company can make.