Effect of Inventory Management Practices on Procurement Performance of Public Level Four Hospitals in Kisii County, Kenya

Authors

  • Stephen Obangi Ogendi
    Msc Student, Procurement and Logistics, Jomo Kenyatta University of Agriculture and Technology
  • Dennis Juma, PhD
    Jomo Kenyatta University of Agriculture and Technology

Abstract

Purpose: The study aimed to examine the effect of inventory management practices on the procurement performance of public level four hospitals in Kisii County, Kenya. Specifically, it investigated the influence of safety stock ordering and economic order quantity (EOQ) practices.


Material/methods: A descriptive survey research design was employed. The study targeted all 177 supply chain management officials in public level four hospitals in Kisii County. Using a stratified simple random sampling technique, a sample size of 175 respondents was selected. Primary data were collected using a structured, close-ended questionnaire, which was pretested for reliability and validity. Data were analyzed using descriptive statistics and presented in tabular form. Inferential statistics, including regression analysis, were conducted to assess the significance and strength of relationships between inventory management practices and procurement performance.


Findings: The results indicated that both safety stock ordering and EOQ practices had a positive and statistically significant effect on procurement performance. These practices contributed to improved stock availability, reduced holding costs, and enhanced order fulfilment.


Conclusion: Effective inventory management—specifically through systematic safety stock ordering and the application of EOQ principles—substantially improves procurement performance in public level four hospitals. These practices help minimize stockouts and optimize inventory costs.


Value: This study provides empirical evidence supporting the strategic role of inventory management in public healthcare procurement. It offers practical recommendations for institutionalizing EOQ-based ordering systems, formalizing safety stock reviews, and implementing training and decision-support tools to align inventory practices with consumption trends and service delivery demands.