Effect of Inventory Management on Supply Chain Performance of Manufacturing Companies in Rwanda: A Case of Bralirwa Plc

Habiyambere Arnaud & Akumuntu Joseph
University of Kigali
https://orcid.org/0009-0005-7540-9745
Email: arnoldhabiyambere@gmail.com

Abstract: The general objective of this study was to assess the effect of inventory management on the supply chain performance of Bralirwa PLC. Data analysis conducted using SPSS (Statistical Package for Social Sciences). The findings indicate the coefficient for inventory cost (β1= 0.345) indicates that for every unit increase in inventory cost, supply chain performance improves by 0.345 units, p-value is 0.000, which is less than 0.05, indicating statistical significance. Stock level has an unstandardized coefficient (β2 = 0.340), meaning that for every unit increase in stock level, supply chain performance improves by 0.340 units, assuming other factors remain constant, p-value is 0.000, indicating statistical significance. Economic order quantity has an unstandardized coefficient (β3 = 0.174), meaning that for every unit increase in economic order quantity, supply chain performance improves by 0.174 units, assuming other variables are held constant, p-value is 0.004, which is less than 0.05, indicating statistical significance. The findings indicate that inventory cost management has a significant and positive effect on the supply chain performance of BRALIRWA PLC. The study recommended that BRALIRWA PLC implement advanced cost-tracking systems to monitor inventory expenditures, optimize procurement strategies and adopt real-time inventory monitoring systems.