THE PRACTICE OF INVENTORY MANAGEMENT IN ETHIOPIA COMMODITY EXCHANGE IN CASE OF HAWASSA & HUMMERA WAREHOUSES

Abstract

The Ethiopian Commodity Exchange was established to revolutionize Ethiopian agriculture and transform the economy through a dynamic, efficient and transparent marketing system. Hence the overall objective of this study is to assess the practice of Inventory Management system and impact on financial performance of ECX. The general objective of the study is to assess the practice of inventory management of ECX in case of Hawassa & Hummera warehouses and its impact on financial performance of ECX. In order to meet these objectives, the study used the total population is eleven and we have been taken the whole data. The method of data gathering was by using structured interview and telephone Interview, observation and companies report are used for data collection. And the data was analyzed through descriptive analysis. The result shows that Ethiopian commodity exchange is facing commodity shortfall due to moisture loss of commodity and human errors with intention and un intention and the company use the same standard moisture loss adjustment for all type of commodity with out considering commodity type and weather conditions were found to be some of constraints that hinder for the smooth functioning of in the exchange.