Abstract:
The main objective of this research was to assess the determinants of effective inventory
management at Seka Chekorsa Hospital. To achieve the objective, study adopted stratified random
sampling method. The main respondents are stratified on the bases of their department. From the
total population of 172 employees in the selected department120 respondents were determined by
using the formula given by (Yamane T. )., (1967). A case study was conducted and questionnaire
was used to collect data. Quantitative data gathered coded and analyzed using Statistical Package
for Social Sciences (SPSS) version 20 computer software. Descriptive statistics was used to analyze
the data in frequency distributions and percentages. Multiple Regression analysis and ANOVA
aided to analyze the degree of relationship between the variables in the study at 5% level of
significance. The analysis showed that, Information technology and bureaucratic procurement
procedure had the strongest positive correlation with effective inventory management at Seka
Chekorsa hospital. In addition, knowledge and skill of the staff and fund of the hospital were
positively correlated to effective inventory management. The study established that Information
technology and bureaucratic procurement procedure was the most significant factor. This study
recommended an improvement of bureaucratic procurement procedure within the hospital to avoid
delays in delivery of inventories. This study also recommended an improvement of Information
Technology within the hospital to reduce losses, stock out and storage costs associated with
inventories. The Seka Chekorsa hospital should also improve the knowledge and skill of its staff and
also ensure that allocate adequate fund and improve financing mechanisms, internal control and
record keeping are well managed.
