Inventory Management Systems and Supply Chain Performance in Public Hospitals in Nairobi, Kenya

Abstract

The study of the Inventory Management Systems and Supply Chain Performance was carried out to assess the impact of inventory management systems on supply chain performance in Public Hospitals in Nairobi, Kenya. Descriptive research method and case study were employed in carrying out the study. The population of the study was eight Public Hospitals (8). Data were generated using questionnaire, observations, books, journals and the internet. Data were presented in tables and analyzed using simple percentages. Chi-Square tests and linear regression was used in the hypotheses testing. From the analyses, it was discovered that inventory management systems and levels of integration adopted, impacts on supply chain performance within the Public Hospitals. The findings indicated that there were significant relationship between inventory management systems and supply chain integration, and supply chain performance. Inventory management systems and supply chain integration has a significant effect on supply chain performance. There is highly positive correlation between inventory management systems and supply chain performance. The study concluded that Inventory Management systems and high level of supply integration are vital in supply chain performance. The study recommended that Public Hospitals should ensure a proper inventory management systems and integration is implemented to control the costs, and the current supply chain integration practices to be reviewed and redesigned to fit the evolving dynamic market environment while all stakeholders in inventory management are involved in the management of inventory processes.