ABSTRACT 

The study aimed at examining the inventory ri1anagement and customer satisfaction in Mukwano Group of Companies by taking objectives to determine the impact inventory levels on customer satisfaction in Mukwano Group of Companies, to examine the challenges in managing inventory and consumption, to establish the relationship between inventory management on customer satisfaction in Mukwano Group of Companies. Inventory management plays a vital role in enhancing customer satisfaction among the manufacturing firms in Uganda. Customer satisfaction is crucial since manufacturing firms contribute greatly to the economic development of a country. A sample size was carried out on all the 150 respondents at Mukwano Group of Companies who were directly and indirectly involved in the inventory management. In this regard the researcher adopted the questionnaire, interview guide and observation guide as instruments which were used to collect the data. A response rate of 90% was obtained. Based on the research findings, all the respondents (1 00%) indicated that the company experienced shortages in inventory. Mukwano group of companies should put a lot of efforts in the following; verification and tendering to ensure that the organization gets reliable suppliers. The study concluded that manufacturing firms have poor inventory management systems and this has greatly impacted on their ability to satisfy the customer.