Inventory Management Performance Research Articles

Firm Size as a Mediator between Inventory Management Andperformance of Nigerian Companies

This study employed a dissimilar methodology in investigating the mediating role of firm size on the relationship between inventory management and performance of non-finance companies publicly listed on the Nigerian Exchange Group. The study was hinged on just-in-time paradigm while variables of inventory management and financial performance were obtained from the annual reports and accounts of 76 non-finance companies. The results obtained from the structural equation modelling showed that size of firm mediates on the relationship between inventory management and financial performance measures of the study and it was found to be significantly positive. On the basis of this, it was suggested that companies need to strengthen inventory management practices as well as increasing their sizes. The size of companies can be increased by way of investing more funds in their asset structures.

Inventory Management and Financial Performance Listed Construction Companies in Nigeria

This study investigated the relationship between cash management and financial performance of listed construction companies on Nigerian Exchange Group. Specifically, the objectives of the study are to examine the relationship between cash management and earning per share, ascertain the relationship between cash management and net profit. The ex -post facto research design was used. The study population comprised Six (6) listed construction companies as listed on the Nigeria Exchange Group in 2021. The entire population was used as the sample size, using the census approach. Data was source through the annual report of listed construction companies for 2011-2020. Pearson correlation and multiple regression was used in data analysis with the aid of Stata12 software. The study revealed that there is no relationship between cash management and earnings per share of listed construction companies on the Nigerian Exchange Group. There is no relationship significant between cash management and net profit of listed construction companies on the Nigerian Exchange Group. The study concluded that there is no significant relationship between inventory management and financial performance. The study recommended that effort should be made to decrease the number of inventory turnover days and increase the creditors’ payable days in order to minimize the length of the working capital cycle for increase financial performance; efficient inventory control measure like storing and transferring stock, as well as tracking should be put in place for enhance financial performance.

A model for inventory management and warehouse performance in the South African retail industry

A model for inventory management and warehouse performance in the South African retail industry

Wholesale Inventory Management Optimization: Methodological Approach with XGBoost, SVR, and Random Forest Algorithms

This research aims to optimize wholesale inventory management at PT Primafood International Pasir Putih 2 by implementing leading algorithms, namely XGBoost, Support Vector Regression (SVR), and Random Forest. In the wholesale industry, effective inventory management plays a crucial role in maintaining smooth production processes and enhancing company profitability. Despite the acknowledged benefits of inventory management, there are aspects that remain not fully disclosed, particularly concerning demand uncertainty and market fluctuations. This study addresses these gaps by exploring the potential of these three algorithms. Experimental methods with a quantitative approach were employed to shape and prepare the dataset. The analysis and predictions' results using XGBoost, SVR, and Random Forest were evaluated using metrics such as Mean Squared Error (MSE), F1-Score, and Accuracy. The evaluation indicates that XGBoost and SVR exhibit optimal performance with low MSE values of 7714.446 and 119.315, high F1-Scores (0.92), and good accuracy levels (0.86 and 0.85), respectively. While Random Forest shows a higher MSE, it still delivers solid performance with an F1-Score of 0.89 and an accuracy rate of 0.81. These findings suggest that all three algorithms can be considered to enhance inventory management performance at PT Primafood International Pasir Putih 2, with significant potential benefits for overall industry development. This research provides valuable insights for decision-making at the business and industrial levels, highlighting the effectiveness of each algorithm in the context of predicting stock level.

Inventory management practices and performance of electoral systems in Kenya

Effective inventory management plays a pivotal role in the overall performance and functionality of systems across various sectors. In the context of electoral systems, where precision, efficiency, and transparency are paramount, the management of inventory, including the planning, tracking, and control of resources, is of utmost importance. Therefore, the study sought to determine the role of inventory management practices on the performance of electoral systems in Kenya. The research design that was used in this study was a longitudinal research design. The population for this study consisted of 373 Commission Secretary/Chief Executive Officer (CS/CEO), Deputy Commission Secretary (DCS), Directors, Managers, County Election Managers, and Constituency Election Coordinators within 290 constituencies of Kenya's August 2017 election. A total of 373 respondents were used as the sample size for the study. Data was used as primary and secondary. While self-administered questionnaire and interview guide were used to collect primary data, the study reviewed the previous evaluation reports to seek the secondary data on General election performance. The data was collected and then analyzed by both descriptive and inferential statistical tools. Being that the study dealt with the relationship study, the study therefore used a regression model as a tool of analysis and the results that were generated were presented in the form of tables. The results of this study benefited policy makers, managers, administrators, citizens all whole, researchers, consultants, scholars, and trainers involved in Election Administration. This study tested the null hypotheses that inventory management practices had no significant role in the performance of electoral systems in Kenya. Pragmatism paradigm approach and mixed method research were adopted in this study. The questionnaire tested both validity and reliability. Quantitative and qualitative techniques were used to analyze the collected data with the assistance of Statistical Package for Social Sciences (SPSS) software version 25. Multiple regression and correlation analysis were carried out. The regression analysis results demonstrated a strong and significant role of inventory management practices on the performance of electoral systems. The R-squared values indicated that approximately 79% of the variation in electoral system performance was explained by inventory management practices. The adjusted R-squared value of 0.788 accounted for the number of predictors in the model. In conclusion, the study reveals that efficient inventory management practices significantly influence the performance of electoral systems in Kenya, emphasizing the need for standardized handling, storage, and transportation processes, the adoption of technology-driven monitoring systems, centralized inventory management, just-in-time approaches, regular cycle counting, and continuous improvement efforts. However, there remains unexplained variance in performance, warranting further investigation to identify additional influential factors. Additionally, future research should extend its focus to other countries in the East African region to comprehensively assess inventory management practices and their impact on electoral system performance

Inventory and financial performance in the pharmaceutical industry: what transpired over the last two decades?

PurposeThe objective of this study is to explore the structural attributes of the pharmaceutical industry before the onset of the COVID-19 pandemic by examining the relationship between inventory and firm performance and developing a taxonomy of pharmaceutical firms based on the earns-turns matrix.Design/methodology/approachThis study examines the inventory–firm performance linkage, considering both total inventory and its discrete inventory components in pharmaceutical firms. In addition, this research develops a new taxonomy of pharmaceutical firms based on the earns-turns matrix. A large panel dataset of firms in the US pharmaceutical industry was collected for the period 2000–2019.FindingsThe results reveal that strategic groups identified based on this taxonomy show different levels of profitability and inventory turns in the earns-turns matrix. Most pharmaceutical firms moved from the low-right to the top-left section in the earns-turns matrix, indicating that these firms have generally pursued profitability rather than effective inventory management.Research limitations/implicationsThis study explores the structural attributes of the pharmaceutical industry using the earns-turns matrix. This two-dimensional analysis may not, however, capture the full complexity of inventory–firm performance dynamics.Practical implicationsThe mapping of strategic groups on the earns-turns matrix provides a useful tool for visual representations of the dynamics of strategic groups in terms of financial performance and inventory management performance. Practitioners can use the earns-turns matrix to benchmark their firm's position against their competitors.Originality/valueThis study broadens the scope of operations management research by introducing the earns-turns matrix as an empirical validation tool for operational and strategic management theories. This study emphasizes the effectiveness of the earns-turns matrix in analyzing strategic groups of pharmaceutical firms.

Logistics Management Practices and Performance of Agricultural Processing Firms in Laikipia County, Kenya

The general objective of this project was to establish the effect of logistic practices and performance of agricultural processing firms. The study was guided by the following specific objectives; material handling, inventory management, transport management, and logistics communication.The study adopted resource based view theory, game theory, firm theory and the theory of constraints. The study used descriptive design because it enhances systematic description that is as accurate, valid, and reliable as possible regarding the responses. The study was limited to agricultural processing firms in Laikipia County, Kenya. The researcher used questionnaires and secondary data as the research instrument to gather the relevant information needed relating to the study. The study involved the use of professionals and experts to test the validity of the questionnaire by trying to assess what concept the instrument was trying to measure and the accuracy of the representation of the concept under research. The quantitative data was analysed using descriptive statistics. Inaddition; the study used multiple regression analysis to analyse the data. This study provided evidence that material handling significantly and positively influences the performance of agricultural processing firms in Laikipia County, Kenya. Concerning inventory management; the study established a significant positive relationship between inventory management and firm performance. This study also provided evidence that transport management significantly and positively influences the performance of agricultural processing firms in Laikipia County, Kenya.Finally, information flow management was found to have a positive significant influence on the performance of agricultural processing firms in Laikipia County, Kenya. The study recommends that agricultural processing firms must have adequate storage facilities with modern materials handling equipment. The study also recommends the inclusion of inventory management in the strategic plans of the agricultural processing firms in Laikipia County, Kenya. The study further recommends the inclusion of inventory management in the strategic plans of the agricultural processing firms in Laikipia County, Kenya.Finally,the study recommends that internal structures and systems that allow a free and timely flow of information between individuals and departments should be put in place. This will allow real-time flow of information between the organization and key stakeholders.

Bibliometrix Analysis: Management Inventory dan Supply Management

Inventory and Supply Management is an important aspect of efficient business operations. Both are interrelated and have an impact on achieving competitive advantage and customer satisfaction. In the case study of PT. Berkahjaya Sentosa Technique, Bibliometrix analysis is used to evaluate the performance of inventory and supply management of companies. The results show that effective inventory and supply management can improve operational efficiency and customer satisfaction. Bibliometrics is an analytical method used to map and analyze scientific literature in a particular field. In the context of inventory management and distribution control, bibliometrics can provide valuable insight into the development and focus of study in a particular field. The purpose of this study is to analyze and summarize scientific literature related to inventory management and distribution control using bibliometric methods. The method used is descriptive analysis using analysis tools such as three-field plots and tables of main information. The results show that scientific literature related to inventory management and distribution control has experienced a decline in annual growth in the period 2018-2023. However, the average citation per document shows that this literature is still very relevant and important in the context of inventory management and distribution control. This research provides valuable insights for researchers and practitioners in the field of inventory management and distribution control

Inventory Management Practices and Performance Of Preference Groups In Kisii County, Kenya

This study endeavored to explore on the relationship between inventory management practices and performance of preference groups in Kisii County, Kenya. The specific objectives were: stock replenishment management, just in time management, re-order level management and inventory description management. The study was anchored on various theories relevant. This study adopted descriptive survey research design. The target population was 1036 respondents’ from 210 prequalified preference groups within Kisii County and a sample size of 104 of the population was established from three stratus. The study equally distributed the sample size equally on all the constituencies of Kisii County. Reliability was tested of 10% (10) respondents using Cronbach alpha index at 0.7 while validity was tested by correlation coefficient. This was above the required before proceeding to the field for data correction. All the predictor variables displayed above average or positive relationship with performance of preference groups. Reliability test results for the variables track your activity management, daily inventory count management, manage out-of-stock product management, clear inventory description management and performance was above the threshold of >0.7. With adequate validity and reliability the instrument were clearly drafted and precisely fit to collect data. The researcher recommends that preference groups were really being affected by inventory management practices. Also the research concludes that the four specific objectives had greater impact on preference groups in Kisii County, Kenya. The study further recommends a review of Public Procurement to provide supportive regulatory framework which was establish an independent body that was to facilitate continuous capacity developments of the disadvantages groups and establish mechanism for regular compliance audit since the current regulation is not clear on action to be taken on non-compliance

Inventory Management and Financial Performance of Listed Industrial Goods Companies in Nigeria

The study sought to determine the relationship between inventory management and financial performance of listed industrial goods companies in Nigeria. The predictor variable proxies used include inventory turnover and inventory conversion period while the referents for the criterion variables used for the study were net profit margin and return on assets. The study adopted the use of an ex-post facto research design. Secondary data were used in the study, which was collected from ten listed industrial goods companies in Nigeria for the 2018 to 2020 financial year. The statistical tools used for the study were descriptive statistics, regression analysis and Pearson’s product-moment correlation coefficient. The result of the finding shows that there is a significant positive relation between inventory turnover, inventory conversion period and net profit margin as well as return on assets of listed industrial goods companies in Nigeria. The study, therefore, concluded a significant relationship between inventory management and financial performance of listed industrial goods companies in Nigeria. The study recommended that the management of listed industrial goods companies should monitor inventory to ensure that optimum levels are maintained at all times to improve performance.

Inventory Management Analysis at UD Nuada Truss Tabanan Branch

Inventory management must be considered by the company so that the inventory costs incurred do not burden the company too high and anticipate the occurrence of inventory shortages. This research was conducted at UD Nuada Truss Tabanan branch with the aim of knowing whether the performance of inventory management is optimal or not. This study uses descriptive analysis techniques using quantitative and qualitative data obtained from observations and interviews. This descriptive analysis technique will be explained in stages starting with ABC analysis, calculating EOQ, safety stock, reorder point, maximum inventory, inventory turnover, and total inventory cost. The results showed that the inventory management implemented by UD Nuada Truss Tabanan branch was not optimal. This is shown by the comparison of the total inventory cost incurred by the company's inventory management which is higher than the inventory management using the EOQ method. the total inventory cost incurred by the company's inventory management was IDR 69,074,629, while the inventory management using the EOQ method was IDR 53,038,890. The application of inventory management using the EOQ method provides efficiency to the company in the amount of IDR 16,035,739 (23.22%).

Impact of Inventory Management on Financial Performance of MSMEs in Santiago City

The study aims to investigate the impact of inventory management on the operational efficiency and financial performance of micro, small, and medium enterprises (MSMEs) in Santiago City. A correlational descriptive cross-sectional survey design was utilized on a sample of randomly selected 314 participants belonging to the merchandising MSMEs from Santiago City. Primary data was collected using self-administered questionnaires analyzed using frequency and percentage, mean and standard deviation, and linear regression. The results showed that MSMEs are efficient in inventory management, operation and have good financial performance. It further suggests a strong positive relationship between inventory management and operational efficiency and a moderate positive relationship between inventory management and financial performance. The study offers practical guidance to MSMEs on optimizing their operational efficiency and maintaining good financial performance through effective inventory management practices. It gives owners and managers valuable insights into specific areas that need improvement and the underlying factors that inventory management affects. Furthermore, the research deepens the understanding of the intricate relationship between inventory management, operational efficiency, and financial performance within the context of MSMEs in Santiago City, thus enriching the existing knowledge for researchers and practitioners.

Effect of Inventory Management and Financial Performance of Manufacturing Firms in Nigeria

The study examines the effect of inventory management on the financial performance of selected manufacturing firms in Nigeria. The ex-post facto design was adopted in this study. 56 listed manufacturing firms in the Nigerian Stock Market were selected as the population of the study. Eleven (11) companies were selected using a purposive sampling method. Multiple Ordinary Least Square regression technique, specifically the panel regression model was applied in testing the hypotheses of the study. Firstly, the study revealed that cash conversion cycle has a negative significant effect on return on assets of listed manufacturing firms in Nigeria. The second hypothesis tested showed that account receivable turnover has a positive significant impact on return on assets of listed manufacturing firms in Nigeria. The third hypothesis tested that indicated that account payable turnover has a positive significant effect on return on assets of listed manufacturing firms in Nigeria. Consequently, the recommendations of the study that manufacturing firms in Nigeria should speed up the conversion of finished into sales. Through putting in place appropriate marketing strategies that ensure quick sales of product to attract more revenues and profit, this can be achieved. Again, manufacturing firms should strive to retain only credit worthy customers who would ensure prompt payment of account receivables. By so doing, quick returns would be enhanced and profitability of manufacturing firms boosted. In conclusion, the manufacturing firms should strive to achieve timely payment of credit purchases as this would aid the suppliers have greater confidence in entrusting more raw materials to the firms on credit basis with the positive effect of boosting their inventories, increased sales and profit.

Evaluating Inventory Management Performance as Measured by Inventory Management Efficiency

Purpose - To measure inventory management performance, we aim to develop a new indicator from which the random variation factor is eliminated. To this end, we propose inventory management efficiency (IME) as a novel metric to which technical efficiency is applied.
 Design/Methodology/Approach - To properly define IME,we established an inventory turnover function for which the multiplicative model represents the relationship between inventory turnover and its determinants, such as gross margin, capital intensity, and sales surprise, as suggested by Gaur et al. (2005). In addition, based on empirical results and the form of the inventory turnover function, we examine in detail whether the inventory turnover function is well- defined. We then examined the validity of the research model with the inefficiency term, which is a one-sided error, and investigated whether the inventory management inefficiency term exists statistically.
 Findings - The inventory turnover function suggested in this study is a well-defined function, and IME is an appropriately defined indicator for measuring inventory management performance. Moreover, the actual inventory turnover is determined on average at a level that is less than the maximum inventory turnover expected from the determinants of inventory turnover.
 Research Implications - IME can be utilized as a newly applicable indicator for evaluating inventory management.

Designing a Web-Based Inventory Application at General Steel Supplier Using Extreme Programming Method

The usage of information technology has grown fast in many sectors of human life. An information technology system that has an important impact on the development of the company's business is required. The inventory system is one of the systems that play an important role to ensure the company's success. General Steel Supplier is a steel company that has a process of collecting goods data and controlling goods in the warehouse that is irregular and highly susceptible to human error. Companies like General Steel Supplier frequently face inventory issues where there is a mismatch in the amount of inventory between the records created and the physical stock in the warehouse, causing a stock difference. The purpose of this research is to create a proposed web-based inventory application for General Steel Suppliers that may be used as a guide for improving inventory management performance. The Extreme Programming method is used in inventory application development, and it consists of Planning, Design, Coding, and Testing. This research developed a web-based inventory application that is used to help all parties involved in managing inventory data in the warehouse, including inventory, incoming goods, outgoing goods, goods returns, and printing reports.

Factors Affecting Inventory Management Performance of Tracer Medicines Across Primary Health Care Units, Gamo Zone, Southern Nations Nationalities and People's Region, Ethiopia.

Inventory management ensures access to tracer medicines (TMs) for priority health-care needs. Factors that impede its performance across primary health-care units (PHCUs) are less explored in Ethiopia. The current study assessed factors affecting the inventory management performance of TMs across PHCUs, Gamo zone. A cross-sectional survey was conducted in 46 PHCUs between April 1 and May 30, 2021. The data were collected using document review and physical observation. A stratified simple random sampling was employed. The data were analyzed by SPSS version 20. The results were summarized as mean and percentage. Pearson's product-moment coefficient and ANOVA were employed at a 95% CI. The correlation test established the relationships between dependent and independent variables. ANOVA test compared the performance between PHCUs. The inventory management performance of TMs across PHCUs is below the standard. On average stock according to the plan is 18%, the stock-out rate is 43%, the inventory accuracy rate is 78.5%, and availability across PHCUs is 78%. 72.3% of visited PHCUs fulfill storage condition criteria. Inventory management performance decreases downward the levels of PHCUs. There is a positive correlation between the availability of TMs and supplier order fill rate, r = 0.82, p < 0.01; between the availability of TMs and report accuracy, r = 0.54, p < 0.001; and between TMs stocked according to the plan and supplier order fill rate, r = 0.46, p < 0.01. The inventory accuracy was significantly different between primary hospitals and health posts (p = 0.009, 95% C.I = [7.57, 60.93]); and health centers and health posts (p = 0.016, 95% CI = [2.32, 25.97]). The inventory management performance of TMs is below the standard. It is attributable to supplier performance, the quality of the report, and performance variation across PHCUs. These result in the interruption of TMs in PHCUs.

Linking inventory management and financial performance of manufacturing industry companies

Purpose- Investments in inventories have a significant role in manufacturing companies’ operating cycles. The rapid conversion of inventories into sales and eventually the creation of profits lead to financial performance. In the study, we examine the effect of various types of inventories held by the manufacturing companies on profitability. Methodology- We use the real sector statistics published by the Central Bank of the Republic of Turkey. In this context, we analyse the data set of 86 sub-sectors for the period from 2009 to 2021 by using the fixed effects panel data model. While gross, operating and net profit margins are dependent variables in order to examine the effect of inventory management in various levels, types of inventories relative to sales are used as independent variables in the models. Other than inventories, fixed assets turnover and manufacturing industry growth rates are included as control variables in the models. Findings- We find that there is not a statistically significant relationship between operating profit margin and inventories other than raw materials. However, finished goods and merhandise inventories are negatively related to net profit margin. None of the inventory types are statistically related to gross profit margin. We obtain a negative relationship between profitability ratios and manufacturing industry growth rate as a control variable. Conclusion- We conclude that the rapid conversion of finished goods and merchandise inventories into sales contributes to net profits of the manufacturing industry companies. However, holding periods of raw materials and work-in-process inventories do not have significant relationships with net profitability. Furthermore, we result that inventories are related to profit margin not at the level of gross or operating profit, rather at the level of net profitability. Accordingly, manufacturing companies should be more cautious about the holding periods of finished goods and merchandise inventories rather than of raw materials and work-in-process inventories. Findings indicate that profit margins of manufacturing companies decrease –probably due to competition– during economic upturns. Keywords: inventory management, manufacturing industry, profitability, working capital JEL Codes: G30, G32

Dynamics, Risk and Management Performance of Urban Real Estate Inventory in Yangtze River Delta

(1) Background: Inventory management is a key point in the achievement of the virtuous cycle and sustainable development of the real estate industry. In response to the practical needs of city-based policies, this paper constructs a new research approach of “evolution dynamics—risk analysis—performance evaluation—policy design” of real estate inventory, and conducts a case study on the Yangtze River Delta. (2) Methods: This paper studies the change characteristics, trends and spatial patterns of real estate inventory changes in the Yangtze River Delta based on Geographic Information System software, and quantitatively evaluates the risk level and management performance of real estate inventory by introducing the Boston Consulting Group Matrix for corporate management and the Super- Data Envelopment Analysis Model for operations research, providing a basis for policy design. (3) Results: First, the “destocking” policy has gained results to some extent and diversified the inventory evolution, thus alleviating or curbing the negative trend in most cities. Second, the real estate inventory in the Yangtze River Delta is divided into high, low, potential and zero pressure zones by risk levels, and the proportion of cities with increased, decreased and unchanged risk levels is essentially the same. Third, the average real estate inventory management performance index has been steadily improving, but overall, it is still unsatisfactory, with cities in an effective state accounting for 40% and below for a long time. Fourth, real estate inventory and its management performance both show significant spatial effects, with cold and hot spot cities characterized by a “center-periphery” spatial pattern in geographical distribution, and the cities in the study area are classified into four types: super-efficiency, efficiency, inefficiency, and super-inefficiency. Fifth, the real estate inventory in most cities is continuing to grow positively, and a small number of cities have been in the high-risk zone for a long time or become new members of the high-risk zone, making the government and enterprises still faced up with great pressure and challenges in inventory management with the risk level further increased but management performance growing slowly. (4) Conclusions: The study area is divided into four types of policy areas, that is, red key area, yellow important area, green auxiliary area, and path-dependent area, and suggestions for optimization are made from the perspectives of risk control, performance improvement, benchmarking recommendation, and redundancy governance, providing a basis for the government’s real estate inventory management policy design and the enterprise’s high-quality development decision.

Scrutinizing IoT applicability in green warehouse inventory management system based on Mamdani fuzzy inference system: a case study of an automotive semiconductors industrial firm

ABSTRACT Over the last three decades, sustainability has been increasingly essential and it is a crucial facilitator for building resilient warehouse inventory systems. Uncertainty influences qualitative criteria for evaluating Green Warehouse Inventory Management performance. According to researchers, technological innovations such as the Internet of Things could be used to help warehouse inventory operations achieve long-term sustainability. An Internet of things-based fuzzy set theory model is developed in this paper for dealing with language inaccuracy and uncertainty in human judgment. It is also the first to use the Mamdani Fuzzy Inference System to assess a company’s Green Warehouse Inventory Management performance in terms of green metrics. The suggested model reveals that the green delivery dimension has the greatest impact on firm performance, based on data gathered from a case company. Numerous defuzzification approaches have been used to demonstrate the resilience of the proposed FIS model.

Inventory management performance for laboratory commodities and their challenges in public health facilities of Gambella Regional State, Ethiopia: A mixed cross-sectional study

BackgroundSustaining an adequate inventory level of laboratory commodities is critical as 70% of medical decisions are made using laboratory-related information. However, millions of populations in developing countries still do not get elementary laboratory services due to the inaccessibility of laboratory commodities. Hence, this study aimed to assess inventory management performance and challenges for laboratory commodities in public health facilities of Gambella regional state, Ethiopia. MethodA health facility-based descriptive cross-sectional study was conducted using a mixed quantitative and qualitative method in seventeen public health facilities of the Gambella regional state between May and July 2021. Data were collected from documents, health professionals, and health care facilities' warehouses. Quantitative data were analyzed using Excel spreadsheets version 14 and SPSS version 23. In the qualitative part, 18 key informants were interviewed, and data were analyzed using thematic analysis techniques. ResultThe average availability of laboratory commodities on the day of the visit was 60.39% in health facilities. Over the past year, 12.94% (37,488.76 US$) of laboratory commodities were wasted due to damage and expiration, while the average stock out date was 58 days. The average accuracy, completeness, and timeliness of the report and requisition form were 49%, 71%, and 64%, respectively. The health facilities had attained only, 68.2% of the storage conditions criteria. Lack of adequate and committed staff, budget constraints, insufficient storage space, frequent shortages of commodities from the suppliers, lack of frequent supervision, and feedback from higher officials were the main challenges for inventory management of laboratory commodities. ConclusionThe inventory management for laboratory commodities was inadequate, which was disclosed by inaccurate records and reports, stock-outs, high wastage rate, lack of adequate staff, budget constraints, and unacceptable storage conditions criteria. The study result suggests strict and close monitoring is needed to improve the inventory management performance for laboratory commodities at health facilities.