Developing inventory optimization frameworks to minimize economic loss in supply chain management

Inventory optimization is pivotal in mitigating economic losses and enhancing efficiency in supply chain management. This paper examines the challenges associated with traditional inventory practices, including inefficiencies, demand variability, and supply chain disruptions, which lead to substantial financial and operational setbacks. Building on theoretical foundations and insights from existing research, a comprehensive inventory optimization framework is proposed, integrating advanced technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and cloud-based systems. The framework emphasizes data-driven decision-making, real-time tracking, lean inventory management, and sustainability, offering scalable solutions for diverse industries. Practical recommendations for implementation include investments in advanced technologies, collaborative supply chain practices, and continuous performance monitoring. The proposed framework aims to reduce costs, improve operational resilience, and align inventory management with broader economic and environmental goals. By adopting this innovative approach, organizations can navigate the complexities of modern supply chains and achieve long-term success.. Keywords: Inventory Optimization, Supply Chain Management, Economic Losses, Advanced Technologies, Lean Inventory, Sustainability.