Effects of Inventory Management Practices on Operational Performance: Evidence from Private Pharmaceutical Importers in Addis Ababa
No Thumbnail Available
Date
2026-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Abeba Universty
Abstract
This study aimed at investigating the relationship between inventory management practices and operational performance by conducting an analysis on selected private pharmaceutical importers in Addis Ababa, Ethiopia. An explanatory research design with quantitative research approach was employed. The population of the study comprised of staffs working in 20 private pharmaceutical importers in Addis Ababa, Ethiopia. A sample of 296 respondents was randomly chosen from the population of study. Primary data was obtained from 253 valid and usable respondents with the help of standardized and self-administered questionnaires through a 5-point Likert scale method. Both descriptive and inferential analyses were performed using SPSS version 26.0. From the findings, it is evident that inventory management practices such as record accuracy, inventory security, inventory turnover, supply responsiveness, storage compliance and demand forecasting have positively and significantly impacted operational performance. Among the identified variables, storage compliance and supply responsiveness showed highest effects while demand forecasting and record accuracy showed moderately significant impacts on operational performance. Inventory security and supply responsiveness showed the lowest effects on operational performance. Therefore, inventory management practices are effective predictors of operational performance. With the strategic use of storage compliance, inventory turnover, demand forecasting and record accuracy, professionals working in pharmaceutical industry can increase efficiency and effectively serve customers, especially when it comes to essential medicines
Description
Keywords
Demand Forecasting, Inventory Management, Inventory Turnover, Operational Performance, Pharmaceutical Importers, Record Accuracy, Supply Responsiveness, Storage Compliance