The Effect Of Inventory Management Practice On Logistics Performance The Case Of Ethiopian Defense Force Logistics Main Department

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Addis Ababa University


The purpose of this study was to assess the effect of inventory management practice on logistics performance in the case of Ethiopian Defense Force Logistics Main Department. Inventory is a crucial part of an asset in any business firm, organization, large or small industry and public service. Because without inventory items, there is no production or service. Therefore managing the inventory is the essential part of the management part. Generally, effective inventory management is the high success of any organization. So, this study concerned to assess the inventory management and its effect on logistics management that may be enables the only military organization in the country to improve the quality service rendering to its end users since its mission is very sensitive. The study was employed both descriptive and explanatory research designs to conduct this research. It contained a qualitative and quantities component that enables the researcher to assess the study easily. The study encompasses the main root of the organization’s inventory management areas of departments (purchasing, warehouse & finance. The sampling technique of the study was stratified sampling technique. The target population was 150 employees of Ethiopian Defense Force Logistics Department. The sample taken was 109 employees which was 73% of the total population and selected proportionally from each stratum. 4 department heads and 1 head of logistics main department were selected for interview and the remaining 104 members for questionnaire. According to the objectives of the study, the key findings of the study revealed that there is a gap on purchasing department in relation to applying competitive based purchasing practice, lack of information sharing between purchasing and warehouse departments, lack of computerized inventory management system, lack of proper inventory handling and disposal system and lack of on job and of job training programs in relation to inventory management practice. These gaps may highly affect the logistics performance in Ethiopian Defense Force Logistics Main Department in relation to customer satisfaction and delivery performance. The researcher recommended for those problems that the inventory management practice should be improved in relation to purchasing, controlling and handling & disposal of inventory items in order to improve logistics performance especially in relation to customer satisfaction and delivery performance.



inventory, inventory management,, performance