Discipline

Business And Education Industry

Abstract

This study examines the inventory management practices of DALI, a private merchandising business operating in the CAMANAVA area of Metro Manila, with the objective of developing a comprehensive Cost-Efficiency Framework to address operational gaps and enhance sustainable retail performance. Businesses operating under volatile demand conditions and narrow profit margins require effective inventory systems. DALI continues to encounter challenges in real-time data utilization, demand forecasting accuracy, automation integration, and sustainability alignment. These gaps contribute to operational inefficiencies, increased costs, and reduced profitability. A quantitative descriptive–correlational research design was employed using a validated survey questionnaire administered to employees involved in inventory, logistics, and supply chain operations. The instrument was structured around two frameworks: (1) the Data-Driven Inventory Optimization Framework, assessing real-time tracking, predictive demand modeling, automation integration, and sustainability measures; and (2) the Lean Supply Chain Management (LSCM) Framework, focusing on waste reduction, continuous improvement, demand-pull systems, and supplier integration. Data were analyzed using weighted mean, standard deviation, and correlation analysis to determine the contribution of inventory and supply chain components to cost efficiency. Findings indicate that integrating real-time data systems with predictive analytics significantly enhances inventory visibility and demand forecasting accuracy. Automation adoption and strengthened supplier collaboration streamline replenishment processes and reduce human error. Sustainability initiatives contribute to waste reduction and lower operational costs. Overall, the combined application of data-driven decision-making and lean supply chain principles results in measurable improvements in cost efficiency, competitiveness, and operational sustainability. The study proposes a Cost-Efficiency Framework demonstrating that digital innovation, lean management principles, and sustainability integration collectively strengthen organizational resilience and long-term profitability. The framework serves as a strategic model for merchandising businesses, particularly in emerging economies, seeking to optimize inventory systems and enhance competitive performance.

Keywords

inventory management, predictive analytics, cost-efficiency framework, data-driven inventory optimization, lean supply chain management, retail sustainability