Improvement of Inventory Management System

The research is intended to cover a sphere of inventory management. More precisely, the study will demonstrate that inventory management is one of the key processes to improve the effectiveness of the company’s activities and competitiveness in the market as through economically efficient inventory control organizations can reduce the cost of production, the acquisition, transportation, and storage costs. Therefore, a crucial problem of effective inventory control formation at manufacturing companies causes a deep concern. The ABC-XYZ-analysis and simulation modelling were performed to serve the purpose of the paper. The SWOT-analysis, the PEST-analysis, the analysis of annual reports and interviewing were conducted to collect and to examine the data. As a result of the successful improvement of the inventory management system at the enterprise the reduction of production and storage costs are proved. The results obtained might provide a useful basis for practical activities.