INNOVATIVE APPLICATION OF HYBRID INVENTORY MANAGEMENT MECHANISMS IN LOGISTICS SYSTEMS WITHIN THE "MAKE-TO-ORDER" MANUFACTURING SYSTEM

ABSTRACT: In general, inventory management mechanisms aim to establish replenishment policies that ensure optimal stock levels. An optimal inventory level means that required materials and products are always available when needed while minimizing holding costs. To determine the economically viable stock level, a thorough understanding of inventory-related cost factors is essential. In addition to classical and widely adopted inventory management models, many companies implement hybrid or mixed inventory strategies that integrate elements from distinct inventory systems. In a Make-to-Order (MTO) manufacturing approach aligned with Industry 4.0 principles, determining the appropriate stock levels for raw materials and semi-finished products poses a significant challenge for logistics professionals. Alongside the advancements of Logistics 4.0, sophisticated hybrid inventory management mechanisms can support experts in optimizing inventory levels, enhancing supply chain responsiveness, and improving operational efficiency.