Optimizing Inventory, Maximizing Output: A Study on Malaysian Manufacturing Performance

Abstract

In the dynamic landscape of Malaysian manufacturing, efficient inventory management has emerged as a pivotal factor in enhancing productivity and sustaining competitiveness. This study investigates the relationship between inventory optimization techniques such as Just-in-Time (JIT), Economic Order Quantity (EOQ), and demand forecasting and their impact on key manufacturing performance indicators, including production lead time, resource utilization, and output consistency. Employing a mixed-methods approach, the research integrates quantitative data from selected Malaysian manufacturing firms with qualitative insights from industry professionals to uncover patterns, challenges, and best practices. The findings reveal that companies leveraging data-driven and technology-enabled inventory strategies experience significant improvements in operational efficiency, cost reduction, and responsiveness to market demands. Furthermore, the study emphasizes the importance of aligning inventory practices with broader organizational goals and digital transformation efforts. It also highlights the role of government policies and industry collaboration in fostering a resilient and innovative manufacturing ecosystem. This research contributes to the growing discourse on supply chain optimization in emerging economies and offers practical recommendations for Malaysian manufacturers aiming to maximize output through smarter inventory management.