Author: Kwansah Ebenezer Ofori-Ayeh
Kwame Nkrumah University of Science & Technology (KNUST)
Email: ekwansah@yahoo.com
Abstract
The major aim of inventory management is to ensure availability of materials to user department without delay and the prevention of stock out. The control of inventories has become such a heavy task that needs the attention of not only inventory staff but also top management to provide the right structures for inventory operation. This has become more prevailing in today`s strategic management decisions, which is geared towards profitability and adding value. Bozarth and handfield (2007), inventory is such a critical resource in many organizations and efforts must be made to devote tools and techniques to manage it. In service providing industries, the desire is to implement the right policies and procedures that will best determine and regulate production schedules to establish requirements, parts, and materials needed to support service delivery and improve upon efficiency. Best practices in the management of drugs and non-drug consumables as well as information flow are the cardinal points in achieving quality health care. The surest way to maintain these critical factors is the proper management of inventory both within the firm and all its supply chain actors. This is not the case in in most public hospitals in Ghana. Inventory management in New Edebiase Hospital is not smooth. Poor inventory control has led to many problems which has affected the quality of health care in the hospital over the past years. Drugs and non-drug consumables availability has been below 60% in the hospital over the years according to statistics from the non-drug consumables and pharmacy unit of the hospital. This has resulted in prolonged sickness and in some cases death of the innocent patient. Shortages of essential drugs, non-drugs consumables and even oxygen for resuscitation account for about 15% of deaths recorded in the hospital (Hospital annual report, 2010). Moreover improper procedures for receiving, issuing, and disposal of non-drug consumables, and medicine have been the order of the day. This has contributed to increased patients dissatisfaction, prolonged illness, and increased needless death and has resulted in a decline in out-patient attendance. The challenge facing inventory is compounded as a result of rampant thievery and pilfering and serious audit queries over the years. (Hospital survey report, 2013).
