Determinants Of Effective Inventory Management Practice At Public Hospital The Case Of Seka Woreda Hospital

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.