Abstract:
The aim of this study was to examine the effect of inventory management systems on the
organizational performance of selected manufacturing firms in Debre Berhan, Ethiopia. A
descriptive and explanatory research design was used, with a target population of 818 personnel
working in Large Manufacturing Firms of Debre Berhan town employees. A sample size of 269
was drawn using Yeman's sample size determination formula. Questionnaires were utilized as the
data collection tool, with two separate instruments: The organization Performance Survey and the
inventory management systems Instrument. The reliability of the instruments was tested using the
Crobanch alpha test. Pearson correlation and multiple linear regression analysis were conducted
to estimate the causal relationships between inventory management systems and organization
performance. The responses were analyzed using descriptive statistics, correlation, and
regression. The findings revealed that each independent variable had a statistically significant
effect on organization performance. Inventory control, Inventory speed, Inventory cost, and
Inventory Accountability all had a positive impact on organization performance. The overall
conclusion of the study suggests that inventory management system plays a crucial role in
determining organization performance levels. As a result, the manufacturing firms should focus
on improving organization performance by actively implementing effective inventory management
system
