Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)

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Impact of Inventory on Production Smoothening in FMCG Supply Chain

Authors
Anchal Garg1, Sachin Gupta1, *, Santosh Kumar2, Atanu Bhuyan3
1Vivekananda School of Economics, Vivekananda Institute of Professional Studies- Technical Campus, GGSIPU, New Delhi, India
2Faculty of Management Studies, University of Delhi, New Delhi, India
3Department of Operations Management, IIM Jammu, Jammu, India
*Corresponding author. Email: sachin.gupta@vips.edu
Corresponding Author
Sachin Gupta
Available Online 10 November 2025.
DOI
10.2991/978-94-6463-894-3_11How to use a DOI?
Keywords
FMCG; panel data analysis; inventories; profit; BSE sectoral Indices
Abstract

The FMCG sector is the cornerstone of any economy with significant contribution to GDP, employment and economic growth. The study aims to explore the relationship among production, demand, inventories and profit before interest and tax for FMCG sector in context of India. For analysis a panel data is employed with 64 firms of Indian FMGC sector, over 10-year time span from 2013-2023. To analyze cost structures and production, ordinary least square (OLS), fixed effect model and random effect model is utilized. It is found that demand, inventories and profit before interest and tax significantly impact Production. Furthermore, higher profitability helps firms to minimize their cost of production and operational costs. The study also highlights the unobserved heterogeneity across firms after employing Breusch- Pagan and Hausman test, illustrating variations in production techniques due to firm specific policies and strategies. Moreover, the inventories plays a significant role in production smoothening.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
10 November 2025
ISBN
978-94-6463-894-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-894-3_11How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Anchal Garg
AU  - Sachin Gupta
AU  - Santosh Kumar
AU  - Atanu Bhuyan
PY  - 2025
DA  - 2025/11/10
TI  - Impact of Inventory on Production Smoothening in FMCG Supply Chain
BT  - Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)
PB  - Atlantis Press
SP  - 146
EP  - 159
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-894-3_11
DO  - 10.2991/978-94-6463-894-3_11
ID  - Garg2025
ER  -