The purpose of this study was to investigate the role of material management on operation performance the case of Bahir Dar textile Share Company. In this research descriptive and explanatory research designs were applied. In order to collect accurate data the researcher used mixed research approach. The researcher used both Primary and secondary data source for the study. The researcher employed simple random sampling technique to determine sample respondents under the study. The researcher used closed ended questionnaire and structured interview as instrument. The collected data through close ended questioner were analyzed by using descriptive statistics and multiple linear regression to see the effect of different causal factors on operation performance. The qualitative data obtained through structured interview were analyzed using qualitative way of word explanation. The finding of this research revealed that operation performance was significantly influenced by inventory control, information technology, lead time, and stock valuation related factors.