Development of the best optimal policy for Inventory control in a Small and Medium Enterprise

This study aims to address the issue of production inventory overstocking and understocking in a small and medium enterprise. Three years' worth of production data were acquired and accurately evaluated using multiple linear regression analysis in the case study to ensure successful inventory management. The MINITAB program was used to create a multiple linear regression model to predict the amount of inventory needed. By entering the amount of each raw material utilized in the model, the management of the company can use the model to predict the monthly total quantity of output. This will aid in stifling any type of employee misconduct. Accurate forecasting of inventory needs is necessary for effective inventory control. By employing historical data in specialized software to create models that can efficiently develop the appropriate policies for inventory requirements in small and medium firms, this work adds to the expanding body of research on data driven inventory management.