The inventory management practices and organizational performance:
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Date
2016-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The research study focused on the inventory management and organization performance in
Gulu Independent Hospital in Gulu District. The study was guided by the following objectives:
1. To analyze the inventory management practices used by Gulu Independent Hospital.
ii. To find out the methods used in performance measurement and its contributions to
organization's performance.
111. To find the importance relationship between inventory management and organization's
performance to Gulu Independent Hospital.
The study used a descriptive survey method. By use of simple random sampling, I 00
respondents from the departments of store, purchasing, top management and others were
selected from the area of study. From each depaiiment respective officers took part in the
study. In all a total of l 00 respondents took part in this research study. The study used closed
ended questionnaires to collect data.
The study reveals that Gulu Independent Hospital holds stock that is used to satisfy current and
future needs of the people of Gulu Independent Hospital. The district carries out monthly stock
taking of items in stores and stock is inspected for quality and right speci lkations.
The methods that are used by Gulu Independent Hospital to manage inventory are stock
valuation where by the system used FIFO to record the value of the stock that is held at a
particular period for accountability purposes and writing of final accounts to be submitted to
the Ministry of Health . The organization has a strong data centre for its stock such as receipts,
invoices which help in keeping record of all the relevant prices so as to carry out a stock
valuation. Basing on the findings, Inventory management helps organizations to cut clown costs
incurred by an organization. It can therefore be concluded that inventory management practices
are related to performance of an organization, corporation or business as regards service
delivery
From the findings, it was evident that inventory management leads to efficiency and
effectiveness by avoiding over stocking and under stocking. To ensure this stock taking is
carried out to determine the stock levels and hence determine the organizations worth. It also
helps to determine the balance of stock and check for any variances and make reconciliations to
make sure that the physical stock corresponds with what is within the records. This helps
management to detect for any variations and consider possible solutions to solving these
problems.
Description
A research report submitted to the college of economics and management as a partial fulfillment for the a ward of a Bachelors Degree of procurement, supplies and logistics of Kampala International University J
Keywords
Inventory management practices, Organizational performance, Gulu independent hospital