Inventory Management Practices and Operational Performance of Manufacturing Companies in Rwanda: A Case of Bralirwa Plc
DOI:
https://doi.org/10.53819/81018102t2065Abstract
Operational performance of manufacturing companies in Rwanda has been an issue of concern to various stakeholders. This study’s main objective was to determine the effect of inventory management practices on operational performance of manufacturing companies in Rwanda. Based on my research and analysis the manufacturing companies, the study was guided by the following specific objectives: to establish the effect of vendor managed inventory on operational performance of manufacturing companies in Rwanda; to determine the effect of demand forecasting on operational performance of manufacturing companies in Rwanda; to establish the effect of Just-in-Time on operational performance of manufacturing companies in Rwanda. This study was based on Goldrat’s Theory of Constraints and Network Perspective Theory. Piloting was done on respondents over a period of two weeks to gain an understanding of the ways in which inventory management practices would affect manufacturing companies’ service delivery and operational efficiency. This study adopted cross sectional survey research design. The target population of the study consisted of 42 employees of Bralirwa Plc from the supply chain, finance, marketing, sales and human resources departments. The study sampled all 42 using census technique because targeted population was small. The study found that vendor managed inventory, demand forecasting and Just-in-Time affect operational performance of manufacturing companies in Rwanda. The study further found that vendor Managed Inventory had significant effect with operational Performance of Bralirwa Plc, Kigali (B=.719; p<0.001). There is no significant statistical effect of Demand Forecasting on Operational Performance of Bralirwa Plc, Kigali. There was a statistically significant effect of Demand Forecasting on operational Performance of Bralirwa Plc, Kigali (B=.768; p<0.001).” The null hypothesis was rejected and the alternate accepted. The study concluded that there was a significant statistical effect of Demand Forecasting on operational Performance of Bralirwa Plc, Kigali. There is no significant effect of Just-in-Time on Operational Performance of Bralirwa. The study concluded that vendor managed inventory, demand forecasting and Just-in-Time affects operational performance of manufacturing companies in Rwanda. The study recommends that Bralirwa Plc, Kigali should employ more vendor managed inventory practices to enhance the operational performance in manufacturing companies on vendor flexibility, strategic plans should factor in both short term and long-term demand forecasting in order to improve on the operational performance.
Keywords: Inventory Management Practices, Operational Performance, Rwanda
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