This paper presents the results of comprehensive numerical analyses in the performance of a packed-bed latent heat storage (PBLHS) system in terms of key performance indicators, namely charging time, charging rate, charging capacity, and charging efficiency. Numerical simulations are performed for the packed bed region using a transient two-dimensional axisymmetric model based on the local thermal non-equilibrium (LTNE) approach. The model considers the variation in the inlet temperature of the system as these storage systems are typically integrated with solar collectors that operate with intermittent solar radiation intensity. The model results are validated using the experimental data for temperature distribution throughout the bed. The simulations are carried out while changing the operating parameters such as the capsule diameter, bed porosity, inlet velocity, and the height-to-diameter aspect ratio to investigate their impact on the performance indicators. Observations indicate that low porosity, large-sized capsules, low inlet velocity, and a low height-to-diameter aspect ratio increase the charging time. In terms of achieving a high charging rate, a bed with low porosity, small-sized capsules, a high inflow velocity, and a high height-to-diameter aspect ratio is deemed advantageous. It is shown that raising the flow velocity and the height-to-diameter aspect ratio can improve the charging efficiency. These findings provide recommendations for optimizing the design and operating conditions of the system within the practical constraints.