ABSTRACT The topic of research was the effects of inventory management on the performance of organizations. One company- Unga Millers (U) Ltd Kampala was identified to form the basis for the research study. The objectives of this study were to establish the effects of inventory management on the performance of Unga Millers (U) Ltd Kampala, to find out the determinants of the performance in Unga Millers (U) Ltd Kampala and to investigate the factors the affecting inventory management in Unga Millers (U) Ltd. Kampala. To obtain the necessary data, the researcher used descriptive research design, the methods/ instruments used included interviews, questionnaires, books and company journals. These were used to collect both primary and secondary data. When collecting questionnaires, the researcher used interviews to clarify on unclear issues and also get additional information that was not properly captured by the questionnaires. Books and journals were also used to collect information on how other authors and researchers view the subject of inventory management and how it affects the productivities of firms. The researcher selected 25 respondents who were randomly selected from the study population of 75, each department being represented. The research findings were analyzed basing on the specific objectives and the findings were analyzed using quantitative method and were presented using Tables, Pie Charts, Line Graphs, Bar Graphs and explanations were made after each presentation. The study established that inventory management and had an effect on the performance of the company and contributed to the downward decline of the company's performance. The researcher concluded that there was urgent need to review the system in use and other systems be looked at. She recommended use of better systems and improvement on the one in existence and full automation of the ordering process.