Abstract:
The main objective of the study was to assess Construction Material Inventory Management
Practice and its effect on the organization performance in the case of Alemayehu Ketema
General Contractor. To achieve the research objective, the study adopts qualitative and
quantitative approach through primary and secondary data sources. The population of this study
was select from Alemayehu Ketema General Contractor. Purposive sampling technique was used
in the primary data collection from Alemayehu Ketema General Contractor located in Addis
Ababa city which was selected to response the questionnaire. While the secondary sources of
data would extract from the government publications, journals, Articles and Masters
Dissertations related to inventory management. The primary data collected using questionnaires
and interview. Tools such as, percentage calculation, Relative Important index (RII) and
Statistical Package for the Social Sciences (SPSS) was used to analyze the collected data.
Accordingly, the study results revealed that, there is adequate supervision at the project, there are
skilled and competent man powers in the construction projects store that use inventory
management tools properly were the current construction material inventory management
practice. In addition, challenges faced in implementing construction material inventory
management were; late delivery of ordered materials, rejection of materials due to non
compliance to the specification, and insufficient storage space. Besides, problem on delay on
project due to poor material management, inappropriate storage location were effects of poor
construction material inventory management practice on the organization performance in
building construction projects. Moreover, Always Better Control (ABC), Periodic inventory
review, Economic Order Quantity (EOQ) was effective technique to improve construction
material inventory management practice in building construction projects. Furthermore, the
study concluded and recommended that all the professionals who participated in construction
projects were need to do in collaborate and made proactive measures to improve construction
material inventory management practice in building construction projects
