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The Egyptian society has witnessed a number of changes that have led to the proliferation of multinational pharmaceutical organizations. The seven major industrialized countries of the world include the headquarters of some organizations (428) out of a total of multinational organizations (500) worldwide. Studies indicate that these organizations grow at a high rate of (10) Which accounts for (40%)of international exports and contributes significantly to the technological development of the world (73%) of the world consumption that controlled by (296) multinational companies. The research problem and its questions focused on the performance management (cost reduction, delivery time) as an intermediary variable in the relationship between inventory management and suppliers of multinational pharmaceutical. The main research objective was to obtain first-hand information on the main difficulties that Egyptian managers consider to improve performance through inventory management of multinational pharmaceutical organizations The results showed was a generally positive relationship and the dynamic stock control system within significantly affected the improvement of the performance of the pharmaceutical organizations, The infrastructure of political and governmental policies and the least important was the infrastructure of local storage, improving performance, While local storage infrastructure, Increasing the inventory over the necessary limit will increase the costs of retention and hide the errors of the production process, and decrease the inventory of the necessary volume may lose the organization part of the sales and costs run out.

Research objectives identify the strengths and weaknesses of the sector which is not conducive to the stability of inventory management and hence the impact of operational performance. This will encourage the treatment of weaknesses, and will measure the effect of inventory management on operational performance in pharmaceutical organizations in Egypt to provide a set of recommendations in improving operational performance through inventory management in pharmaceutical organizations in Egypt. The main research objective was to obtain first-hand information on the main difficulties that faced Egyptian managers in improving performance through inventory management of pharmaceutical organizations. The results showed a general positive relationship between inventory management and operational performance, within a significant improvement of a dynamic stock control system on the performance of the pharmaceutical organizations. The infrastructure of political and governmental policies was accepted as the most important factor affecting on improving performance. On the other hand; the least important factor was the infrastructure of local storage (H1 was accepted as the most important factor affecting improving performance), custom and paperwork. Increasing the inventory over the necessary limit will increase the costs of retention and hide the errors of the production process, on the other side, will decrease both, the inventory of the necessary part of the sales in the organization and the run out costs.