Inventory Control and Profitability of Private Health Institutions: A Case Study of Mayanja Memorial Hospital Mbarara, Uganda

ABSTRACT The study sought to assess the effect of inventory control on profitability of hospitals in Mbarara district, Uganda. It was guided by three specific objectives, that included; to determine the effect ofjust-in-time inventory on profitability of hospitals in Mbarara district, Uganda, to establish the effect of vendor managed inventory on profitability of hospitals in Mbarara district, Uganda and to establish the effect of material requirements planning on profitability of Mayanja Memorial hospital in Mbarara district, Uganda. This research a descriptive research design to describe the variables and the questionnaire and interview guide were used as the research instruments. Descriptive statistics were used in this study included frequencies, means and regression analysis on variables. The findings revealed the following: The findings indicated that just-in-time significantly affects the profitability of Mayanja Memorial hospital in Mbarara district, Uganda, this effect therefore implies that just—in—time highly contribute to the profitability of hospitals in Mbarara district, Uganda, the findings revealed that there is a significant effect vendor managed inventory has on profitability of Mayanja Memorial hospital in Mbarara district, Uganda findings of this study proved a positive significant effect material requirements planning has on profitability of Mayanja Memorial hospital in Mbarara district, Uganda. Still the conclusions were that; there is a positive significant effect just—in—time has on profitability of hospitals in Mbarara district. Uganda (130.491, SigO.000), effective vendor managed inventory significantly improves profitability of hospitals in Mbarara district, Uganda ([3=0.425, Sig=0. 000), Material requirements planning highly affects the profitability of Mayanja Memorial hospital in Mbarara district, Uganda ([30.533, Sig=0. 000). The researcher recommended that the: the owners should develop a good system to monitor, record and track all the inventory so that there is expansion in the size of the institution in inventory control and ensure to cover loopholes in the system to enhance profitability of Mayanja Memorial hospital in Mbarara, owners and managers of the hospitals in Mbarara should develop vendor managed inventory system as an alternative way of keeping inventory.