The purpose of this research study was to examine the effects of inventory managementrnpractices on organizations operational performances: the case of Ethiopian Airlines. Thernresearch objectives were to examine the effect of inventory management practice on, on timernperformance; to study the inventory management practice in Ethiopian Airlines; to examine thernrole of inventory planning and inventory control section in the Airlines and to examine thernchallenges in implementing inventory management practice in Ethiopian Airlines. The researchrnstudy was conducted through a causal and descriptive research design. The research studyrnadopted purposive sampling techniques in which all PSCM and MRO key users were selected.rnThe data was analyzed based on descriptive statistics in which SPSS version 20 was used. Thernresearch study established that effective inventory management model, inventory recordrnaccuracy , stock out management and information technology usage is statistically significantrnwith P-value >0.05 and information technology usage has more impact on operationalrnperformance of Ethiopian Airlines relative to other inventory management practices studied.rnThe research concluded that inventory management practices impact significantly thernoperational performances of Ethiopian airlines. The implementation of an effective inventoryrnmanagement practices leads to many benefits in the airline , including ensuring on timernperformance, optimal production, meeting the assembly targets and customer satisfaction, whichrnare all associated with operational efficiency. While there are different inventory managementrnpractices, the findings of this research study establish that Ethiopian Airlines more likely tornbenefit from Economic Order Quantity model, Vendor Managed Inventory and Bar-codingrnInventory management model. The research study establishes that Ethiopian Airlines shouldrnembrace effective inventory management practices this is because an effective management ofrninventories has an overall impact on enhancing operational performance of the organization,rnincluding a guarantee of on-time performance, ensuring optimal production levels are met, andrnmaking sure that assembly targets are met, which, consequently, leads to a customerrnsatisfaction