Abstract: The purpose of this study is to assess the impact of inventory management to the profitability of manufacturing companies in Rwanda with reference to Sulfo Rwanda industry. As a problem many companies perform poorly due to lack of effective inventory management. The specific objectives of the study were to identify how just in time technique affect profitability of Sulfo Rwanda industry, to find out how ABC Analysis techniques contribute to the profitability of Sulfo Rwanda Industry, and to assess how Economic Order Quantity affect profitability of Sulfo Rwanda Industry. The study used descriptive research design in the study and correlation research design with a sample of 35 out of the 115 employees in Sulfo Rwanda industry. The study applied purposive sampling technique.
For the first objective, table 4.2.2.1 shows that due to the practice of just in time technique the industry gained profit with mean of 3.29, 3.34, 3.00 which means the neutrality of respondents and 4.00, 4.09, 3.74, 3.77, 3.43 which means that the fact appears more.
For the second objective, table 4.2.2.2, shows that due to ABC technique the profitability level increased with mean of 2.51 which means the fact appears less of respondents and 3.49, 3.80, 3.69, 3.71, 3.63 which means that the fact appears more.
For the third objective, table 4.2.2.3, demonstrates that due with the practice of EOQ firm profitability increased with mean of 3.46, 4.03, 4.11, 3.91, 3.83, 3.71 and 3.69 which means that the facts appear more.
As conclusion the correlation was 0.903 (90.3%) is located in the interval 0.9≤P<1 categorized as positive and very high correlation. The industry was recommended to expend its storeroom; the room can be short in the following period because it is shown that Sulfo Rwanda is currently improving its services for many customers. So the storeroom will have little capacity to store maximization level of inventory.
Keywords: manufacturing companies, inventory management. Sulfo Rwanda industry.
Title: IMPACT OF INVENTORY MANAGEMENT ON THE PROFITABILITY OF MANUFACTURING COMPANIES IN RWANDA, A CASE OF SULFO RWANDA INDUSTRIES 2013-2016
Author: COSSY Kayitesi, Dr. Jaya Shukla, Dr. Patrick
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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