In today’s competitive business environment, efficient inventory management is critical for sustaining operational performance, minimizing costs, and meeting customer demands. This study aims to investigate the role of inventory management tools and their impact on the operational performance, a reputed company in the textile manufacturing sector. The research focuses on key inventory management tools such as Economic Order Quantity (EOQ), Just-In-Time (JIT), ABC analysis, and inventory tracking systems used by the company. Through a structured questionnaire and interviews with employees across different departments, data were collected to evaluate the effectiveness of these tools in reducing stockouts, controlling inventory costs, improving lead times, and ensuring smoother production processes. A quantitative research methodology was adopted to analyze the data and assess the correlation between inventory practices and operational efficiency. The findings reveal that the strategic use of inventory management tools significantly enhances productivity, reduces waste, and supports timely order fulfillment. The study also highlights challenges in implementation and offers recommendations to optimize inventory practices. Overall, the research emphasizes the importance of adopting advanced inventory management strategies to strengthen the company’s operational performance and achieve long-term competitiveness in the textile industry.