The Role of Inventory Management on Financial Performance in Some Selected Manufacturing Companies in Mogadishu

Abstract

In this study, the research team studied the role of inventory management on the financial performance in some selected manufacturing companies in Mogadishu with the major objective of the study is to determine the inventory management practices used in manufacturing firms and to investigate the relationship between inventory management and financial performance in manufacturing firms. The research team selected 72 respondents with the use of questionnaire as instrument and data was analyzed using both descriptive and correlation statistics of mean and frequency (percentage) for SPSS. After gathering and analyzing data, the study found that there is significant positive relationship between the inventory management and financial performance where r=0.683.