Background: Health commodities inventory management practices provide current informationrnon quantities of health commodities consumed as well as enables to accurately estimaternrequirements for future use. A poorly functioning health commodities inventory managementrncan lead to frequent stock outs leading to services interruptions or overstock.rnThe objective of the study was to assess the health commodities inventory managementrnpractice of the Zewditu Memorial Hospital using primary data that was collected through arnsemi-structured questionnaire, observation check list & interview. Out of the 91 questionnairesrnthat were distributed to the purposively elected employees of the hospital, 77 (84.6%) of themrnwere collected back and used for the analysis .Besides 4 hospital stores were visited & all thernrequired information were included in this study .Data was analyzed using descriptive statics .rnThe study found that ZMH health commodities to be long-term agreements between thernhospital and its suppliers, maintain proper store management the majority of the store managersrnhad adequate knowledge how to store and practiced health commodities and they had also arnpositive attitude towards the importance of appropriate storage of commodities, obsolete,rnexpired, or damaged inventories properly identified and segregated, inventory recordsrnreconciled to advantage reports on a regular basis and management have review thernreconciliation of physical inventory counts to the inventory records applied at ZMH but ,usesrnautomatic stock tracking and adequate detailed written inventory instructions and proceduresrnexist, uses Enterprise Resource Planning system, maintains a data base for all suppliers, usesrnJust In Time stock control system and an integrated information sharing system were notrnapplicable at ZMH. Finally from the study it can be concluded that the main challenges of thernhospital in managing inventory are: lack of modern technologies, insufficient funding, lack of inventory management training, the length of bureaucratic processes in the procurement systemrnand stock out of health commodities. In general the consequences of the above were occurredrnhigh level of stock out which might have leaded to services interruptions at ZMH healthrncommodities.rnBased on these findings, the study recommends that government allocates more funds to publicrnhospitals to be invested in modern information technologies because this will lead to increasedrninformation sharing, reduction of costs and improved quality of health services. In addition,rninventory management training should be given to improve the availability and the quality ofrnservices in ZMH.rnKey words: Health commodities inventory management, stores, medicines, medical suppliesrnmedical equipments, laboratory commodities