INFLUENCE OF INVENTORY MANAGEMENT SYSTEMS ON SERVICE DELIVERY IN PUBLIC HOSPITALS IN NAIROBI CITY COUNTY, KENYA

Abstract

This study examined the influence of inventory management systems on the service delivery in the public hospitals in Nairobi City County, Kenya. The study used 80 respondents who were involved in the inventory management activities in the public hospitals in Nairobi City County. It was established that, R was the correlation coefficient there existed strong positive relationship between the independent variables and dependent variable as shown by R value (0.788). The coefficient of determination (R 2) explained the extent to which changes in the dependent variable explained by the change in the independent variables or the percentage of variation in the dependent variable and the four independent variables that were studied explained 62.10% of the service delivery in the public hospitals as represented by the R 2. This therefore meant that other factors not studied in this research contributed 37.90% to the service delivery in the public hospitals in Kenya. This implied that these variables were very significant therefore needed to be considered in any effort to boost service delivery in the public hospitals in the study area. The study therefore identified the variables as critical factors of inventory management systems to enhance service delivery in the public hospitals in the study area.The study recommended for the Vendor Managed Inventory (VMI) systems in the hospitals that had a stock management system to minimize the total holding and ordering costs annually thus leading reduction of stock out costs. The organizations should have optimal stock levels; the employees get involved in the quality planning and labour requirements planning. The study recommended for a Radio Frequency Identification (RFID) system which ensured that there was a reduced machine setup time for the reduction of stock out costs. The study recommended for firms to put in place RFID systems to ensure that there is planning for inventory to improve decision making for the timely delivery of goods. The study recommended JIT systems in the public hospitals is an important element in its supply chain. The JIT system can be done through digitalization of information and data, rationalization to improve efficiency in administration process. The success of JIT systems will depend on the increase of bidders (suppliers) that participate to procurement auctions to enhance service delivery in the public hospitals in Kenya.