This study investigates the relationship between inventory management strategies and financial performance in the global pharmaceutical industry. Given the sector’s high service requirements, demand uncertainty, and product perishability, maintaining an effective balance between inventory availability and holding costs is critical for profitability. The study adopts an integrated analytical framework combining macro-level firm analysis and micro-level product analysis. At the macro level, Fixed Effects panel regression is used to examine the impact of inventory turnover on profitability, while K-means clustering is employed to classify firms according to their financial and operational characteristics. At the micro level, correlation and scenario analyses are conducted to assess the effect of supplier-imposed Minimum Order Quantity (MOQ) constraints on product margins. The findings indicate that inventory turnover has a statistically significant positive effect on return on assets, and that high profitability is associated not only with inventory efficiency but also with conservative leverage structures. In addition, the results reveal a strong negative relationship between MOQ coverage and profit margin, suggesting that procurement constraints can be a major source of inventory-related inefficiency. By integrating firm-level financial analysis with product-level supply chain diagnostics, the study shows that financial performance in pharmaceutical supply chains is shaped not only by managerial decisions but also by external procurement restrictions.

Keywords

Pharmaceutical industry; Inventory management; Financial performance; Fixed Effects panel regression; K-means clustering; Minimum Order Quantity