The effect of inventory management on the performance of non-government hospitals:

Abstract

The study “effect of inventory management on the performance of Non Government Hospitals” was aimed at assessing the contribution of inventory management to the performance of non- governmental hospitals in the delivery of basic health services in Uganda in collaboration with the Local Government – case study Bishop Caesar Asili hospital. Because of huge inventories maintained by most firms and a considerable sum of money committed to these inventories, it is absolutely essential to manage inventories effectively so as to avoid unnecessary costs. The study was guided by the following objectives; to find out the effect of inventory management system as regards to inventory recording, inventory pricing and valuation and ABC analysis, to examine the effect of inventory records accuracy (inventory systems) on organisational performance, and to analyse the effect of inventory turnover. The study used a case design study which employed both qualitative and quantitative techniques. The study used questionnaires to collect primary data and the field data was analyzed using Statistical Package for Social Scientists (SPSS) version 17.0 software. The study revealed that, Non Government hospitals make successful contributions to health in certain circumstances and as such inventory records accuracy and pricing and valuation have a positive effect on their performance. The study further revealed that inventory turnover helps the hospital to determine the optimal levels of inventory a facility must have at a given time. Thus, the study recommends that hospitals should ensure that inventory is well managed in all aspects and records are accurately kept at all times in order to boost performance. This can be done by training the pharmacy team, using computerised system other than only manual, adequately compensating staff and implementing Vendor Managed Inventory