Afework, Fisseha (Asst.Professor)Shanko, Assefa2022-03-052023-11-042022-03-052023-11-042021-12http://etd.aau.edu.et/handle/123456789/30435This research was conducted to assess the inventory management practices (namely measured by LMIS implementation, accuracy of stock keeping records, Supportive Supervision, and storage condition) and its effect on operational performance of tracer drugs in health centers of Adama Town, Oromia, Ethiopia. Tracer Drugs are pharmaceutical products that satisfy the priority healthcare needs of clients which must be available in the health facilities at all times in adequate amounts with affordable price by the community. The descriptive aspect of the research design was used in establishing the health centers inventory management practices and the analytical research design was used to establish the relationship between inventory management practices and operational performance of tracer drugs. The target population for this study was 8 public health centers of which 6 were included for the study. Two health Centers excluded from the study because of incomplete documents. Proportionate Stratified Random Sampling technique was used to get representative respondents from each health centers to quantitatively and qualitatively assess the supposed relationship between the independent and dependent variables. Semi structured-questionnaire, check lists and in-depth interview questions were used as the formal instrument of data collection. A total of 106 questionnaires were distributed and 99 of them were filled and returned which made the response rate 93 percent and of which all of them were complete and qualified for being processed. The study findings show that inventory management practices of Adama Town health centers need improvement. It has also revealed that supportive supervision and LMIS system for inventory management practices have statistically significant predicting power on operational performance of TDs (adequate availability) with Beta values of ( 0. 765, P .00 ) and ( 0.254, P 0.00) respectively. It is recommended that all health centers of Adama town are required to review their existing inventory management practices. In addition, Adama town has to follow and support LMIS implementation, inventory control system and lean inventory system at all units stocking pharmaceuticals in order to benefit from the performance improvements in terms of adequate availability, minimized stock out days and avoid over stock.en-USinventory managementtracer drugsavailabilityoverstockshortageThesis