Effect of Inventory Management Practices on the Organizational Performance of Public Institutions in Rwanda: A Case of Rwanda Medical Supply

Aline Josée Ubonyeneza and Martin Gachukia
University of Kigali
Email: aubonyeneza@gmail.com

Abstract: This study examined the effect of inventory management practices on the organizational performance of Rwanda Medical Supply. The study focused on demand forecasting practices and their contribution to organizational performance. A descriptive and explanatory research design was adopted using a quantitative approach. The target population comprised 120 employees of Rwanda Medical Supply, and census sampling was used. Primary data were collected using structured questionnaires, while secondary data were obtained through documentary review. Data were analyzed using descriptive statistics, Pearson Product Moment Correlation, and regression analysis. The findings indicated that demand forecasting practices were generally applied at a high level, particularly through the use of historical consumption data and consideration of seasonal and service demand patterns. Pearson correlation analysis revealed a strong and statistically significant positive relationship between demand forecasting practices and organizational performance (r = 0.710, p < 0.01). Regression analysis showed that demand forecasting practices explained 50.4% of the variation in organizational performance (R² = 0.504), while the effect was statistically significant (B = 0.760, p < 0.001). The study concluded that effective demand forecasting contributes to improved inventory planning, stock availability, resource utilization, and organizational performance. It recommends strengthening forecasting tools, regularly reviewing and updating demand forecasts, and monitoring forecasting accuracy to support effective inventory management and service delivery.