Abstract:
The purpose of this study is to assess the factors influencing inventory Management efficiency in
National Tobacco Enterprise Ethiopia Share Company at Robi farm Area. The various factor
influencing inventory management were the adoption of technology ,procurement policy and
procedures, staffs skill competency, stock recording and auditing culture of inventory and
managerial supports. The general objective that was analyzed of the study is to investigate the
factors affecting inventory management efficiency in National Tobacco Enterprise (Ethiopia)
Share Company, Robi farm. The research adopted descriptive study design. A stratified random
sampling technique is applied to the study. The research used a sample size of 84.3% of the
target population (75) to act as the sample size. The research used questionnaire to collect data
for the research. The questionnaire contained closed ended questions and five point Likert scale
questions and covered areas of inventory management efficiency to come up with good raw data
for the research. The collected data were qualitatively as well as quantitatively analyzed using
statistical methods such as SPSS (v.20) which is commanded Descriptive analysis to produce
frequency tables and figures, and inferential statistics like correlation and linearity tests, and
regression for better results and effective interpretation. The key findings from the study revealed
that: procurement policy and procedure, and inventory recording and auditing culture have
positive and significant effect on the inventory management efficiency whereas, the effect of
adoption of technology, skill level of staffs and managerial support is insignificant to influence
on inventory management efficiency in the study area. The research recommends that
NTEESCRF should be try to improve the adoption of technology, competency of its staffs skills
through appropriate capacity building training and integrated managerial support for better
inventory management efficiency.in addition to this the company should have work more to
increase efficiency in inventory management through utilization of standard inventory
management techniques such as ABC analysis, Just in time, Vendor managed inventory and
cross docking, different principles that have positive effect on efficient inventory management
with minimizes wastage and cost
