Assessing the Role of Inventory Management in Retail Sector: A Case-Based Analysis

This research explores the role of inventory management in small- and medium-sized enterprises (SMEs) within the Indian retail sector through a case study of Rajesh Retail Stores, a mid-sized FMCG retailer in New Delhi. The study aims to evaluate how inventory management practices affect operational efficiency, profitability, and overall business performance. Using a mixed-method approach, the research employed thematic analysis of interviews and observations, alongside quantitative analysis of sales data from 2020 to 2022. Key findings reveal that the store's inventory turnover ratio was relatively healthy, but challenges such as overstocking, supplier delays, and occasional stockouts hindered optimal performance. The study highlights the importance of integrating technology into inventory processes and improving supplier relationships to reduce replenishment times and enhance demand forecasting. The broader implications emphasize that efficient inventory management is crucial for SMEs to remain competitive, reduce costs, and increase profitability. The research fills a gap in the literature by focusing on inventory management challenges faced by SMEs in emerging markets, offering practical recommendations for improvement.