Review of Optimizing Inventory Management in the Supply Chain in the Manufacturing Sector Using Mathematical Models

Effective inventory management is vital for the success and profitability of small and medium-sized enterprises (SMEs) in the manufacturing sector.This paper reviews mathematical models to optimize inventory management within SME supply chains, aiming to reduce costs, improve stock levels, and prevent issues like stockouts and overstocking.SMEs often face challenges due to limited resources and inefficient traditional practices, which can lead to excess inventory or shortages.By applying mathematical models such as Economic Order Quantity (EOQ), Just-In-Time (JIT), and Vendor-Managed Inventory (VMI), SMEs can balance inventory holding costs, order costs, and service levels.Different mathematical models and analyses their applicability to SMEs, emphasizing how these models can enhance decision-making, reduce operational costs, and improve supply chain efficiency, even with limited technology investments.The research demonstrates that optimizing inventory through mathematical approaches can help SMEs respond better to demand fluctuations and increase their competitiveness in the manufacturing sector.This study highlights the value of integrating effective inventory management strategies to promote long-term growth and operational stability in SMEs.