Journal of African Development

This research investigates the impact of Inventory Management Practices on Financial Performance by assessing how the value of stock held and the I nventory policies implemented influence the cost of products sold and profitability within the organization. The survey design method was employed for this study, utilizing annual audited financial reports. Field design in conjunction with descriptive statistics was also employed. The results of the study for hypothesis 1 indicated a substantial correlation between the value of stock held and the cost of goods sold from 2016 to 2024, with a p-value of 0.005 and an F-statistic of 23.96. Hypothesis 2 demonstrated a p-value of 0.001 and an F-statistic of 46.26. This indicated a positive correlation between inventory management and control policies and profitability. Cement manufacturing companies are advised to establish a policy framework to expedite the adoption of optimal inventory management methods, including Just-In-Time (JIT), Material Requirements Planning (MRP), and Economic Order Quantity (EOQ). The company should enhance supplier relations to the level of partnerships. This will enable the execution of programs such as Vendor Managed Inventory (VMI). The organization ought to diversify its inventory system to accommodate the specific requirements of manufacturing