Advance Financial Modeling Techniques for Reducing Costs: A
Review of Strategies and Effectiveness in Manufacturing Sectors

Ikilidih; Joy N. Dibua; Ekene C.; Bala M. Adejoh

doi:10.56201/jafm.v10.no7.2024.pg74.89

📄 Download Paper

Advance Financial Modeling Techniques for Reducing Costs: A Review of Strategies and Effectiveness in Manufacturing Sectors

Ikilidih, Joy N. Dibua, Ekene C., and Bala M. Adejoh,

Abstract

This study investigate the effectiveness of financial modeling techniques reducing inventory cost within the manufacturing sector, with emphasis on the integration of forecasted analytics, artificial intelligence (AI), and machine learning. Using a systematic literature review and content analysis, the research explained academic journals, conference proceedings, and industry reports published between 2018 and 2024. The methodology rest on predefined inclusion and exclusion criteria to ensure the relevance and quality of the selected literature, followed by a thematic analysis. Key findings reveal that advanced financial modeling significantly enhances demand forecast accuracy, thereby optimizing inventory levels and reducing other costs. The use of AI and machine learning technologies not only streamlines inventory management processes but also enables manufacturers to adapt swiftly to market fluctuations, thus reducing waste and improving operational efficiency. Despite the benefits, challenges such as data quality, technology integration, and ethical considerations in AI implementation were identified. The study recommends that manufacturers prioritize the adoption of these advanced models, invest in relevant technologies, and foster a culture of continuous learning and adaptation. Future research directions among other things include- exploring the scalability of these models for SMEs, assessing the long-term sustainability of cost reductions, and investigating the potential of emerging technologies like connectivity technology, integrated sensing and communication capabilities, and block chain in inventory management. Finally, the strategic implementation of advanced financial modeling techniques enhances competitiveness, achieve cost efficiencies, and navigate the complexities of the digital era in inventory management.

Keywords

Advanced Financial ModelingForecasted AnalyticsInventory Cost ReductionCash

References

Adeusi, S. (2023). Modeling the Critical Success Factors for Advanced Manufacturing Technology Implementation and Financial Performance. Journal of finance.11 (3)90. Adepu, A. (2023). Production Planning Based on Demand Forecasting. 2022 International Conference on Industrial Engineering and Operations Management. https://doi-org Anne, O. (2024). Leveraging AI for Inventory Management and Accurate Forecast-An Industrial Field Study. Alberto, B. (2024). Pricing Financial Instruments: The finite difference method. John Wiley and sons. Amajuoyi, C. (2023). Machine Learning in Financial Markets: A critical Review of Algorithmic Trading and Risk Management. Internal Journal of Science and Research Archive, 11(01)2023 Eldred M.E and Hiren C. (20323). Leveraging AI for Inventory Management and Perfect Forecast. An Industrial Field of study. Enoch, A. (2024) Derivatives: The Theory and Practice of Financial Engineering. John Wiley & Sons. Gaikward, C. (2023). Introduction to Credit Risk Modeling. CRC Press. Joseph, C. (2023). Design and Implementation of GIS Basic Data Quality Management Tools for Power Network. 2023 International Seminar on Computer Science 347-250. Kuzucu. & Kuzucu, S. (2023). Linking Inventory Management and Financial Performance of Manufacturing industries. Press Academic Procedia,16, 207-208. Louis, N. (2023). Advanced Financial Modeling Techniques for Reducing Inventory Cost. A Review of Strategies and their Effect in Management. International Journal of Science and Research Archive 15(01) Marie, J. (2023). The Influence of Technological Capacity and Financial Capacity on Promoting Firm Competitiveness and Performance. Journal of Humanities, Social Science and Business. 3(1), 125-141 Michael. (2024). Strategies in Financial Modeling. Journal of Finance. 14(9) 80. Nokeri, S. (2023). An Automation Framework for Supply Chain Inventory Management using Predictive Business Analytics. 2023 OITS International Conference on Information Technology. Paul, S. (2024). A review of Strategic Decision –Making through Big Data and Analytic. Journal of Business Studies. 4(2) 160-175.

Advance Financial Modeling Techniques for Reducing Costs: A Review of Strategies and Effectiveness in Manufacturing Sectors

Abstract

Keywords

References

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT