Abel Bogonko Nyakeri
Jomo Kenyatta University of Agriculture and Technology, KENYA
Mr. George Ochiri
Jomo Kenyatta University of Agriculture and Technology, KENYA

CITATION: Nyakeri, B.A. & Ochiri,G.(2014 Factors Affecting Effective Inventory Management in Healthcare Facilities Service Delivery in Kenya: A Case Study of Kenyatta National Hospital (KNH) Nairobi, Kenya. European Journal of Business Management, 1 (11), 181-192

ABSTRACT

Managing inventory in an effective manner has a positive impact on the business since it allows business to meet or exceed customers’ expectations of product availability with the amount of each item that will maximize their company’s net profit or minimize its total inventory investment (Schieber & Akiko, 2010). The study was seeking to find out factors affecting effective inventory management in public health facilities in Kenya with the aim of making recommendations on how to improve such effectiveness .The specific objectives was to find out if enterprise resource planning, Just in Time, Economic order quantity and material requirement planning are the factors affecting Effective inventory management on healthcare facilities in Kenya. Kenyatta National Hospital (KNH) as not implemented advanced inventory management systems which has disadvantaged it on responsiveness to cases of stock outs, poor records, high stock costs, poor quality services and reduced efficiencies. The literature review appreciated the scholarly work of past studies and theories. The beneficiaries of the study are future researchers, hospitals, top management and employees of Healthcare Sector. Descriptive research design was used for the study and questionnaires were used as the data collection instrument, Slovin’s formula was used to pick a sample of 75 respondents from a target population of 300 staff involved in inventory management in KNH. In collecting the data, open-ended and closed-ended questions will be used. The quantitative data generated was analyzed by use of descriptive statistics feature in SPSS version 20.0 to generate information which was presented using tables, charts, frequencies and percentages and inferential statistics to make predictions or inferences about a population from observations and analyses of a sample. The regression model was used to show the relationship between the dependent variable and the independent variables. The study concluded that ERP implementation enhance accuracy in inventory management, provides speed in inventory management, reduce the cost managing inventory in public Hospitals, helps with proper controls in inventory management and finally provides efficiency in inventory management. The study concluded that of JIT helps to match demand and supply, provides short lead times and short time deliveries for inventory.

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