Reducing Inventory Levels in a Supermarket through the Six Sigma Method

Abstract

Being one of the most active industries in an increasingly globalized world, the retail sector has become a rapidly developing sector in Türkiye. Businesses in this sector must follow inventory policies that enable them to minimize costs and maximize profits to be able to survive on the market. For this reason, effective management of inventory is crucially important in this industry, as well as in others. The Six Sigma method, a management tool that emphasizes continuous improvement and increases the efficiency of processes, was used in the present study to reduce the inventory levels in a large supermarket offering both wholesale and retail products in Türkiye. In this study, the causes of high inventory levels were investigated by following the steps of the Six Sigma method. After the collected data were analyzed, some improvement actions were taken to reduce the inventory levels, and a monitoring system was established to ensure sustainability. It was found that there were deficiencies in the inventory tracking and demand forecasting processes. The main reason for this was found to be the purchasing organization. The results also revealed that unnecessary purchases were made. The Six Sigma studies on supermarkets in Türkiye are limited, so this study sets an example of Six Sigma, which is a systematic process improvement method for the retail industry.