IMPACT OF INVENTORY MANAGEMENT TO THE FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN RWANDA CASE STUDY: LIBRAIRIE CARITAS LTD PERIOD: (2021-2023)

Abstract

This dissertation submitted and presented to school of Economics and Business Studies in fulfillment of the academic requirements for the awards of Bachelor’s Degree in Accounting, for Academic year 2023-2024 entitled “Impact of inventory management to the financial performance of small and medium enterprises in Rwanda, case study: Librairie Caritas ltd, period: (2021-2023)”, was done by BAMPORINEZA Emmanuel, student in ULK. The main objective of this study is to evaluate the effect of inventory management to the financial performance of SMEs in Rwanda. Specifically, this study intends to assess the effectiveness of inventory management in Librairie Caritas Ltd between 2021-2023 and to find out the contribution of inventory management on the financial performance of Librairie Caritas Ltd. It is the reason why this study tried to respond whether inventory management implemented in Librairie Caritas Ltd effectively and if inventory management contribute to the financial performance of Librairie Caritas Ltd. By using questionnaires given to the employees of Librairie Caritas Ltd taken by sampling in different departments, depending to the domain, and considering the information given by physical documents, the researcher proved that there is relationship between inventory management and financial performance of Librairie Caritas Ltd. The research identified that when inventory management was effectively implemented in Librairie Caritas Ltd, the financial performance was in good conditions but when inventory management was not implemented perfectly in Librairie Caritas Ltd, the financial performance was in bad conditions.