The Impact of Inventory Management On Performance of Kagadi Hospital Kibaale District Mid Western Uganda a Case Study of Kagadi Hospital

TABLE OF CONTENTS

DECLARATION .................................................................................................................... 11

APPROVAL ............................................................................................................................ iii

DEDICATION ........................................................................................................................ iv

ACKNOWLEDGEMENT ...................................................................................................... v

LIST OF ACRONYMS .......................................................................................................... vi

TABLE OF CONTENTS ...................................................................................................... vii

ABSTRACT ........................................................................................................................... ix

CHAPTER ONE ...................................................................................................................... 1

1.0 Introduction ........................................................................................................................ 1

1.1 Background of the Study ................................................................................................... 1

1.2 Statement of the Problem .................................................................................................. 2

1.3 Purpose of the Study ......................................................................................................... 2

1.4 Objectives of the Study ..................................................................................................... 3

1.5 Research Questions ........................................................................................................... 3

1.6 Scope of the Study ............................................................................................................. 3

1.7 Significance of the Study .................................................................................................. 3

Conceptual Model .................................................................................................................... 4

CHAPTER TWO ..................................................................................................................... 6

2.0 LITERATURE REVIEW ................................................................................................. 6

2.1 Introduction ........................................................................................................................ 6

2.2 Definition of Concepts ...................................................................................................... 6

2.2.1 Inventory ......................................................................................................................... 6

2.2.2 Inventory Management .................................................................................................. 6

2.2.3 Objectives of Inventory Management ........................................................................... 6

2.2.4 Motives of Holding Inventory ....................................................................................... 7

2.3 Inventory Managements Systems ..................................................................................... 7

2.3 .1 Just in Time (JIT) Technique ......................................................................................... 8

2.3.2: Two Bin System ............................................................................................................ 8

2.3.3 ABC Analysis ................................................................................................................. 8

2.3.4 Order Cycling System .................................................................................................... 9

2.3 .5 Economic Order Quantity .............................................................................................. 9

2.3.6: Minimum-Maximum Stock Levels ......................................................................... 10

2.3.7: Stockless Purchasing .................................................................................................. 11

2.3 .8: Material Requirement Planning (MRP) ..................................................................... 11

2.3.9 Stock Control Chart ...................................................................................................... 12

2.4 Performance ..................................................................................................................... 13

2.4.1 Definition of Performance ........................................................................................... 13

2.4.2 Performance Measurement .......................................................................................... 13

2.4.3 Aims of Performance Measurements .......................................................................... 16

2.5 Relationship Between Inventory Management and Performance ofEnterprises ........ 17

2.5.1 lnventory Valuation ...................................................................................................... 17

Vll

2.5 .2 Just in Time ................................................................................................................... 17

2.5.3 Safety Stock .................................................................................................................. 18

CHAPTER THREE ............................................................................................................... 19

3 .0 RESEARCH METHODOLOGY ................................................................................... 19

3 .1 Introduction ...................................................................................................................... 19

3 .2 Research Design .............................................................................................................. 19

3 .3 Sources ofData ................................................................................................................ 19

3.3 Data Analysis ................................................................................................................... 19

3.4 Data Presentation ............................................................................................................. 19

3 .5 Measurement of Variables .............................................................................................. 20

CHAPTER FOUR ................................................................................................................. 21

4.0 DATA PRESENTATION AND ANALYSIS OFTHEFINDINGS ........................... 21

4.1 Introduction ...................................................................................................................... 21

4.2 Findings on the Inventory Management Objectives ..................................................... 21

4.3 Findings on Motives ofHolding Inventory ................................................................... 21

4 .4 Findings on Inventory Management Control Systems .................................................. 21

4.4.1 ABC Analysis ............................................................................................................... 21

4.4.2 Economic Order Quality .............................................................................................. 22

4.4.3 Just in Time ................................................................................................................... 22

4.5 Findings on Performance ................................................................................................ 22

4.6 Findings on the Relationship Between Inventory Management and Performance of

Enterprises .............................................................................................................................. 24

CHAPTER FIVE ................................................................................................................... 25

5.0 CONCLUSIONS AND RECOMMENDATIONS OF FINDINGS ............................. 25

5 .1 Introduction .................................................................................................................... 25

5 .2 Conclusions ...................................................................................................................... 25

5.3 Recommendations ........................................................................................................... 26

5.4 Area of Future Research ................................................................................................. 26

REFERENCES ...................................................................................................................... 27

QUESTIONNAIRE ............................................................................................................... 29

APPENDIX I. ......................................................................................................................... 31

APPENDIX Il ........................................................................................................................ 32

APPENDIX Ill ....................................................................................................................... 33