Abstract:
This study's main goal was to examine how inventory management practices affected Rwandan
manufacturing companies' financial results. It has three specific objectives such as to examine
the effectiveness of inventory managements practices at BRALIRWA, to assess the effects of
inventory managements practices on the financial performance at Blarirwa from 2021up to 2023
and to find relationship between inventory management practices and financial performance of
BRALIRWA. Descriptive and correlational research designs were used in this study. Because of
the way the study was set up, 41 respondents who were systemically selected from among
BRALIRWA employees were able to submit the questionnaires. Source of data was gathered
utilizing primary and secondary data source, which was gathered with the use of paperwork and
a questionnaire. The Statistical Package for the Social Sciences (SPSS) software has been used
to process the data, which is then shown in tables.
Then, it was discovered that BRALIRWA, a manufacturing business and profit-making
organization, relies heavily on the precision, dependability, effectiveness, and efficiency of
inventory management to meet its objectives.
Goal achievement will thus have been largely dependent on the inventory management strategies
employed by BRALIRWA, including JIT and the economic order quantity approach. Effective
inventory management is critical to enhancing client interactions, lowering
production expenses; a decrease in the carrying and total costs of inventory would improve the
company's financial performance. It was well observed that BRALIRWA’s profitability was
diminished during the duration of the investigation. A very significant connection of 99.8% was
found when comparing the findings of the correlation coefficient table, indicating that efficient
inventory management contributed to BRALIRWA's profitability. The investigation came to the
conclusion that BRALIRWA's primary method of achieving its degree of profitability was
inventory management. According to the report, BRALIRWA should implement new strategies
and enhance inventory management to prevent a decline in profitability.
