INVENTORY MANAGEMENT AND PERFORMANCE OF MANUFACTURING COMPANIES IN RWANDA CASE STUDY: BRALIRWA PLC PERIOD: 2021-2023

Abstract

Inventory management in manufacturing companies has become more important not only because of the management of stock that the world has experienced recently but also the introduction of Basel II. Inventory management plays a major role in the manufacturing companies to maintain the inventory performance. Using a time series and cross sectional data from 2021-2023 obtained from Bralirwa PLC, this study examined the Inventory management on performance of Bralirwa PLC. Manufacturing companies are expected to be socially responsible, support local communities and ensure adequate supply of inventory system to all legitimate business and consumers to price those inventory reasonable in line with market determined rates without jeopardizing the viability of the company. The objective of this study was to assess Inventory Management and Performance of Manufacturing Companies in Bralirwa Plc. The study findings revealed that there is an effect or a close relationship between Inventory Management and Performance of Manufacturing Companies of where it was noted that well management of inventory was the main source of the positive financial performance achieved by Bralirwa Plc that the operating profit ratio increased at 14.2% in the period of 2022 the operating profit ratio was 14.3% while 2023 increase of 16.07%. In general, the operating profit ratio was not good because operating profit ratio was net during last two years. This was due to the profit incurred by BRALIRWA Plc in 2021 and 2022 where the profit was from expansion of electricity power across the country. Finally, this study ends up with some recommendations where the Bralirwa PLC should improve the training of employees of Store keeper to enhance the suitable effective performance of Inventory Management.