Annor Michael Narkotey
Annor Michael Narkotey
Annor Michael Narkotey
By
(PG 4090210)
JUNE, 2012
DECLARATION
I hereby declare that this submission is my own work towards the Executive Masters of
previously published by another person nor material which has been accepted for the
award of any other degree of the University, except where due acknowledgment has been
Certified by:
Certified by:
Healthcare systems are organizations established to meet the health needs of target
population. Inventory represents the largest single investment in assets for most
organizations. While inventory is concerned with monetary issues, health facilities are in
the business of saving lives. Although inventory has an important role to play, the
emphasis should be on using it in a way that makes a difference to the quality of patient
care. Despite efforts being made by the Ministry of Health, Ghana Health Service and its
partners to provide the country with health commodities (medicines and medical
logistics) to meet the requirements of clients (people who need the healthcare), these
commodities are often wrongly managed or inadequate. These therefore leaves the clients
with no alternatives than to fall on the traditional medicines or travel over long distances
in search of health care or seek spiritual assistance from churches, shrines, witchdoctors
and so on. The main objective of this research is to assess the role that inventory
health facilities in the Ho municipality were chosen for the study. The researcher adopted
were divided into three (3) strata in order to ensure that each was appropriately
represented in the survey sample. Stratum 1, comprised the inventory managers; Stratum
receivers.It was established that majority of inventory managers and healthcare providers
leave their jobs or facilities and travel long distances for the health commodities from
either the Central Medical Stores (CMS) or the Regional Medical Stores. In most cases,
these inventory managers happened to be the only staff at the department or unit, thus
depriving the facility of their valuable service. The researcher recommends that health
commodities must be delivered directly to the health facilities from the Central Medical
This project work is dedicated to the Although God who gave me the strength,
I also dedicate this work to Mr. and Mrs. Raymond Botchey and my children, Mike-
My first gratitude goes to the Almighty God for guiding and protecting me throughout
my course of study.
My greatest thanks also go to Mr. Francis Kpemlie, my project supervisor for his
guidance, direction, and for devoting his precious time to read my script and making all
I also express my sincere thanks to the management and staff of Volta Regional Medical
My thanks go to the general public especially, the clients that visits the health facilities in
the Ho municipality.
Finally, to Mr. Robert Adatsi and Mr. Emmanuel Barnes, both of the Volta Regional
Health Directorate and Miss Georgina Kafui Tekpeh of the Volta Regional Medical
Stores for their effort and contributions in bringing this work to a success. May the
Declaration ii
Abstract iii
Dedication v
Acknowledgements vi
1.8 Limitations 6
2.1 Introduction 7
3.1 Introduction 34
5.1 Conclusion 67
5.2 Recommendations 69
References 71
APPENDICES 74
TABLES PAGE
FIGURES
INTRODUCTION
Countries have different policies and plans in relations to the personal and population-
based healthcare goals within their societies. Healthcare systems are organizations
established to meet the health needs of target populations. In all cases, according to the
robust financing mechanism; a well trained and adequately paid workforce; reliable
information on which to base decisions and policies and well maintained facilities and
Inventory represents the largest single investment in assets for most organizations. In
availability, for which the result has mostly been higher inventory levels (Chopra and
Meindl, 2003).
Inventory management is needed as being a portion of supply chain network to guard the
cramp a health facility’s operations. From a low cost needle to a high-end orthopaedic
implant, micro steel instruments, supplies (health commodities) are indispensable during
a patient’s stay at the health facility. Quality care cannot be provided on time unless
role in providing efficient healthcare in relation to three vital aspects of medical supplies
Despite efforts being made by the Ministry of Health, Ghana Health Service and its
partners to provide the country with health commodities (medicines and medical
logistics) to meet the requirements of clients (people who need the healthcare), these
All the 2010 annual reports on monitoring and supervisory visits by the various Budget
Management Centers (BMCs) - Public Health, Clinical Care and the Health
Administration and Support Services of the Volta Regional Health Directorate to all the
eighteen (18) Districts in the Volta Region (HO MUNICIPAL inclusive) shows that most
communities do not receive efficient health care delivery due to some factors including
Annual Report). These therefore leaves the clients with no alternatives than to fall on the
traditional medicines or travel over long distances in search of health care or seek
The main objective of this research is to assess the role that inventory management plays
2 To analyze the role that inventory management plays in healthcare delivery at the
3 To evaluate the perceptions of both the healthcare providers and the healthcare
receivers on how the health commodities get to them at the health facilities in Ho
Municipalities.
municipality?
2. What role does efficient inventory management play in healthcare delivery at the
3. What are the perceptions of healthcare providers and healthcare receivers at health
This project is to help address the factors that lead to the improper or poor inventory
management on primary healthcare delivery in the Ho Municipality and how the problem
can be solved or minimized through efficient management of the health commodities
available.
The project also served as a reference material for any person that would like to conduct
The project again drew the attention of the Ministry of Health, Ghana Health Service
especially the Stores, Supplies and Drugs Management Division of the Ghana Health
Service and the Volta Regional Health Directorate to the problem in the management of
This study is focused on how the management of health commodities are done by the
public health facilities in the Ho Municipality, such as the Volta Regional Health
Directorate, the Ho Municipal Health Directorate, and all the Hospitals, the clinics and
the Health centers that fall under the umbrella of the Ho Municipal Health Directorate.
The target population of the study comprised primary healthcare providers at the health
that visit the health facilities) and Inventory Managers (those that procure, receives,
Hospitals 4 Functioning
Polyclinic 1 Functioning
Clinics 9 Functioning
Chapter one deals with the general background information about inventory management
and Healthcare delivery in general and Ghana in particular, it looks at the statement of the
problem, the objective of the study, research questions, significance of the chapters.
Chapter two focuses on the literature review. The literature review is on Primary
of health systems, brief history of Ghana Health Service, and the role of inventory
Chapter three deals with the population, sampling procedure, instruments used, the
Chapter four focuses on the results and discussions of the data collected from
respondents. The results and discussions covers the findings made on:
Chapter five presents the summary, the conclusion and the recommendations of the study.
1.8 LIMITATIONS
Due to the busy schedules of the respondents, it was not easy to get them to answer the
questionnaires on time.
The study result was limited to the Ho Municipality therefore generalizations made for
Last but not least, some respondents failed to return the questionnaires and/or not
interviewed at all.
CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
The purpose of this chapter is to review literature and theoretical framework of inventory
management, which is the management of the largest single investment in assets for most
organizations.
health systems, and the role of inventory management in healthcare delivery were
• Definitions of Inventory
• Types of Inventory
Lysons and Gillingham (2003) in their book, Purchasing and Supply Chain Management
(6th Edition), defined Inventory as an American accounting term for the value or quantity
and supplies required for creation of a company’s goods and services. The number of
Rick Lavely (1998), defines Inventory as piles of money on the shelf and profit for the
company or organization.
GEEK, 22 May, 2011), Inventory is the total amount of commodities or materials contain
in a storehouse or warehouse at a given time. The word “Inventory” can refer to both the
The relevance of these theories to the study is that Inventory is to be seen as the largest
investment in assets and represents one of the primary sources of revenue generation and
Stock and Lambert (2001), categorized inventories into six main types, namely:
Cycle Stock is the inventory that results from the replenishment process and is required
in order to meet demand under conditions of certainty. That is when the firm can predict
In-Transit Inventory (Pipeline) is the inventory that is en route from one location to
another. It may be considered part of cycle stock even though it is not available for sale
Safety or Buffer Stock is the stock held in excess of cycle stock because of uncertainty
in demand or lead time. The notion is that a portion of average inventory should be
Speculative Stock is inventory held for reasons other than satisfying current demand.
Seasonal Stock is a form of speculative stock that involves the accumulative of inventory
before a season begins in order to maintain a stable labour force and stable production
Dead (obsolete) Stock is the set of items for which no demand has been registered for
some specified period of time. They are out of date, deteriorated or no longer useful as a
Stock and Lambert (2001), outlined five reasons for holding inventory.
The first is to enable the firm achieve economies of scale. Inventory is required if a firm
Secondly, it balances supply and demand. Seasonal supply and/or demand may make it
Inventories in excess of those required to support production can result from speculative
purchases made because management expects either a future price increase or a strike, for
example.
Finally, inventory acts as a buffer between critically interfaces within the supply chain.
Since members of the supply chain are separated geographically, it is necessary for
inventory to be held throughout the supply chain in order to successfully achieve time
and place utility. Though these reasons for holding inventory are very good and
Ballou (1999), lists three reasons why holding inventories draws skepticism.
The first is that inventories are considered wasteful because they absorb capital that
Secondly, inventories held, if not properly stored can result in deterioration of otherwise
high quality products leading to poor customer satisfaction and loss of revenue.
Thirdly, according to Ballou, why holding inventories draws skepticism is that keeping
These theories are relevant to this study in that it suggests that though inventory is
deterioration, since the capital used in the procurement of inventory can otherwise be
used profitably.
inventory management is primarily about specifying the size and placement of stocked
a supply network to protect the regular and planned course of production against the
Lysons and Gillingham (2003), identified three main aims of inventory management as
• To provide both internal and external customers with the required service levels in
• To ascertain present and future requirements for all types of inventory to avoid
James Healy (1998), highlights that distributors carry Ten to Thirty percent (10-30%) of
additional inventory that is unnecessary. These cause unnecessary carrying cost, loss of
customers, loss of sales, and loss of profit due to sloppy and inefficient inventory
management. He further points out that there is the need to set out procedures to control
operation by reducing the amount of time that goods are kept on the shelf (rack time),
The relevance of these theories to this study is that it reveals that holding unnecessary
stock of commodities adds to the operational cost of any organization and therefore
techniques and procedures to ensure that the right quantity and quality of commodities
includes the monitoring of commodities moved into and out of stockroom locations and
This technique assigns items to three groups according to the relative impact or values of
the items that makes up the group. Those thought to have the greatest impact, or value,
for example, constituted the ‘A’ group, while those items thought to have a lesser
impact or value were contained in the ‘B ‘ and ‘C’ groups respectively. (Coyle et al
(2003)).
In many ABC analysis, a common mistake is to think of the ‘B’ and ‘C’ items as being
for less important than the ‘A’ items and, subsequently, to focus most or all of
management’s attention on the ‘A’ items. A decision might be made to assume very high
in-stock levels for the ‘A’ items and little or no availability for the ‘B’ and ‘C ‘items.
The fallacy here relates to the fact that all items in the A, B and C categories are
important to some extent and that strategy to assure availability at an appropriate level of
cost.
The purpose of this classification is to ensure that purchasing staff use resources to
maximum efficiency by concentrating on those items that have the greatest potential
savings. Selective control will be more effective than an approach that treats all items
The relevance of this theory to this study is that it suggests that though all categories of
Dave Plasecki (2001), defines Economic Order Quantity as an accounting formula that
determines the point at which the combination of order costs and inventory costs are the
least.
Lysons and Gillingham (2003), also defines Economic Order Quantity as the optimal
assumptions that simplify reality. The model is valid only when the assumptions are true
constructed.
technique when the demand and lead time are relatively stable, as well as when
This theory is relevant to this study in that it suggests that the appropriate or optimum
level of stock or inventory that an organization should keep or store must help to reduce
carrying more inventory than is needed at a time. Thus the emphasis is on carrying only
the quantities of stock needed at any point in time, and this is achieved through precise
schedules. It relates the dependent requirements for the materials and components
comprising an end product to time periods known as ‘buckets’ over a planned horizon
(typically one year) on the basis of forecasts provided by marketing and sales and other
input information.
procedures, decision rules, and records designed to translate a master production schedule
into time-phased net inventory requirements for each component item needed to
Lysons and Gillingham (2003), outlined the aims of material requirement planning as
follows:
production requirements.
• To achieve planned and controlled inventories and ensure that required items are
• To promote planning between the purchaser and the supplier to the advantage of
each.
• To enable rapid action to be taken to overcome material or component shortage
Coyle et al (2003), also explained the goals of material requirements planning as follows:
In doing so, the material requirement planning system considers current and planned
quantities of parts and inventory products, as well as the time used for planning.
Manufacturing resource planning (MRP II), has been defined by the American
requirement planning and also including the additional planning functions of production
Lysons and Gillingham (2003), explained that, manufacturing resource planning (MRP
II) has wider implications than material requirements planning (MRP I).
Stock and Lambert (2001), also explained that, material requirements planning (MRP I)
developed into manufacturing resource planning (MRP II) with the addition of financial,
According to Coyle et al (2003), manufacturing resource planning (MRP II) allows a firm
helps describe the likely results of implementing strategies in areas such as logistics,
manufacturing, marketing, and finance. Thus, it helps a firm to conduct “what if?
analysis and to determine appropriate product movement and storage strategies at and
(MRP II) are relevant to this study in that they place emphasis on carrying quantities of
stock that is needed at any point in time and avoid unnecessary stock. This therefore
Stock and Lambert (2001), explained that Enterprise resource planning (ERP) is a system
that includes the core accounting functions of accounts payable, accounts receivable, and
Lysons and Gillingham (2003), defines Enterprise resource planning (ERP) as a business
Lysons and Gillingham, further explained that Enterprise resource planning (ERP) is the
latest and possibly the most significant development of material requirement planning
(MRP I) and manufacturing resource planning (MRP II). While MRP I and MRP II
allowed manufacturers to track supplies, work in progress and the output of finished
goods to meet sales orders, ERP is applicable to all organizations and allows managers
from all functions or departments to have a consolidated view of what is, or is not taking
central role in co-coordinating the flow of goods inside the factory with the system
modules that place goods in the hands of the customers, and provides the basis for
integrating the manufacturing resource planning (MRP II) system from the firm to the
field.
potentially powerful technique for outbound logistics systems to help determine the
appropriate level of inventory. They further explained that, DRP helps companies to
improve customer service (decrease stock out situations), reduce the overall level of
The underlying rationale for Distribution resource planning (DRP) is to more accurately
forecast demand and to explode that information back for use in developing production
schedules. In that way, a company can minimize inbound inventory by using material
et al, 2003).
The relevance of this theory to this study is that it suggests that inventory quantities are
determined by comparing inventory status with the total number of items needed to meet
Coyle et al (2003), defined Just-In-Time (JIT) System as an inventory control system that
attempts to reduce inventory levels by coordinating demand and supply by the point
where the desired item arrives just in time for use. Ideally, products should arrive exactly
when a firm needs it, with no tolerance for late or early deliveries.
Lysons and Gillingham (2003), also defined Just-In-Time System as an inventory control
philosophy whose goal is to maintain first enough material in just the right place at just
System suggests that inventories should be available when an organization needs them,
Stock and Lambert (2001), defined Just-In-Time System as a program which seeks to
high-quality products, high productivity levels, lower levels of inventory, and developing
minimum amount necessary for a task is considered wasteful. Thus, Just-In-Time (JIT)
This theory is relevant to this study because it focuses on the identification and
inventory and reduce cost throughout the entire supply chain system.
categorize all inventory in accordance to relative impact and value, so that the more value
The Economic Order Quantity (EOQ), focuses more on minimizing inventory cost rather
Material Requirement Planning (MRP I), Manufacturing Resource Planning (MRP II)
Distribution resource planning (DRP) avoids unnecessary inventory and also compare
inventory status with the total number of items needed to meet operational schedule.
The Just-In-Time (JIT) System ties to eliminate waste by maintaining just enough
inventories at the right place at the right time to make just the right amount of product.
All these inventory management techniques discussed above reveals that carrying
unnecessary stock of goods and materials adds to the operational cost of the organization
and therefore reduces its profitability. Therefore, the solution to reducing overall cost of
holding inventory lies with adopting the use of efficient procedures to manage and
control physical inventory of goods. Thus, the organization must invest thoroughly in
ensuring that the right stock is available when and where it is needed. This helps to
reduce the loss of sales opportunities and thereby improve upon the profitability of the
organization.
An organization incurs costs every time an item is handled. Since handling generally
Inventory is a major use of capital and for this reason; efficient inventory management is
increasing sales volume or cutting inventory costs. Increased sales are often possible if
high levels of inventory lead to better in-stock availability and more consistent service
levels. Low inventory levels can reduce fill rates on customer orders and result in lost
sales.
Stock and Lambert, further explained that, better inventory management can increase the
management policy. Therefore, inventory managers must determine how much inventory
Chopra and Meindl (2003), explained that inventory exists in an organizational operation
because of the mismatch between supply and demand. Therefore, inventory’s role is to
increase the amount of demand that can be satisfied by having the product or service
Another important role inventory plays is to reduce cost by exploiting economies of scale
that may exist during production and distribution, but managers should use actions that
Chopra and Meindl (2003), suggests that since inventory plays a significant role in a
supply chain’s ability to support a firm’s competitive strategy and that the firm’s
competitive strategy requires very high level of responsiveness, a company can achieve
costs (the costs of being out of inventory). This is very important to all organizations,
especially in the healthcare delivery where delay by a few seconds can cost a life.
The World Health Organization (WHO), defines health systems as “all the organizations,
institutions, and resources that are devoted to producing health actions”. This definition
includes the full range of players engaged in the provision and financing of health
services including the public, nonprofit, and for-profit private sectors as well as
Health systems encompass all levels: central, regional, district, community, and
household. Health sector projects engage with all levels and elements of the health
The World Health Organization Report 2000 (WHO 2000), identifies the four key
• Financing
The stewardship or governance function reflects the fact that people entrust both their
lives and their resources to the health system. The government in particular is called
upon to play the role of a steward, because it spends revenues that people pay through
taxes and social insurance, and because government makes many of the regulations that
govern the operation of health services in other private and voluntary transactions (WHO
2000).
enforcing policies that affect the other health system functions. The World Health
Organization has recommended that one of the primary roles of a ministry of health is to
develop health sector policy, with the aims of improving health system performance and
Schieber and Akiko (1997), defined health financing as “the methods used to mobilize
the resource that support basic public health programs, provide access to basic health
By understanding how the government health system and services are financed, programs
and resources can be better directed to strategically complement the health financing
already in place, advocate for financing of needed health priorities, and aid populations to
access available resources. Many health sector programs are involved in strengthening
Health systems in developing countries are financed through a mix of public, private, and
donor sources.
The third function of the health system is the recruitment, training, development, and
essential medicines and medical supplies, and investment in physical health infrastructure
The World Health Organization (WHO 2000), noted that human resources are the most
Recently, attention has focused on the fact that progress towards health related
resources in health, with serious implications for child survival and health goals.
For government health workers, evidence shows that effective public management can
philosophy calls for responsibilities to be delegated to local areas with responsibility for
specific tasks and decision making at the local level, a focus performance (output and
outcomes), a client orientation, and rewards or incentives for good performance (World
Bank 2004).
This health system function includes a broad array of health sector components, including
the role of the private sector, government contracting of services, decentralization, quality
Mills et al (2002), defined private health sector to compromise “all providers who exist
outside of the public sector, whether their aim is philanthropic or commercial, and whose
The private sector is a key source of health services, and its coverage is rapidly
increasing. Use of government health services is too low to affect indicators such as
child mortality without the contributions of private sector health services, including Non-
2.8.4.2 CONTRACTING
Contracting refers to any public purchasing or donor financing of services from private
providers, both for-profit and nonprofit, and encompasses a broad spectrum of services.
These services include, the direct provision of healthcare, the training of health providers,
Quality assurance is a health system element that has grown in importance as costs of
care have escalated and consumer awareness and demand for quality services have
increased. Many studies demonstrate that rise of services and willingness to pay are
strongly related to patient perceptions of quality. Improved health outcomes are closely
2.8.4.4 DECENTRALIZATION
effectiveness, increase local participation and autonomy, redistribute power, and reduce
ethnic and regional tensions. Decentralization is also used as a means of increasing cost
efficiency, giving local units greater control over resources and revenues, and increasing
The Ghana Health Service (GHS) is a Public Service body established under Act 525 of
responsible for implementation of national policies under the control of the Minister for
Health through its governing council – the Ghana Health Service Council. The Ghana
Health Service continue to receive public funds and thus remain within the public sector
However, its employees are no longer part of the civil service, and Ghana Health Service
managers will no longer be required to follow all civil service rules and procedures. The
independence of the Ghana Health Service is designed primarily to ensure that staffs have
a greater degree of managerial flexibility to carry out their responsibilities, than would be
possible if they remained wholly within the civil service. Ghana Health Service does not
The establishment of the Ghana Health Service is an essential part of the Key strategies
identified in the Health Sector Reform process, as outlined in the Medium Term Health
Strategy (MTHS), which are necessary steps in establishing a more equitable, efficient,
accessible and responsive health care system (GHS 5-year strategic framework for
The Ghana Health Service is mandated to provide and prudently manage comprehensive
and accessible health service with special emphasis on primary health care at regional,
• Manage prudently resources available for the provision of the health services.
For the purpose of achieving its objectives the Ghana Health Service will perform the
other agencies.
As a result decentralization and health sector reform; services are integrated as one goes
down the hierarchy of health structure from the national to the sub-district.
At the regional level, curative services are delivered at the regional hospitals and public
health services by the District Health Management Team (DHMT) as well as the Public
At the district/municipal level, curative services are provided by the DHMT and the
Public Health unit of the district hospitals. The District/Municipal Health Administration
district.
At the sub-district level both preventive and curative services are provided by the health
centers as well as out-reach services to the communities within their catchment areas.
Basic preventive and curative services for minor ailments are being addressed at the
community and household level with the introduction of the Community-based Health
Planning and Services (CHPS). The role played by the traditional birth attendants
(TBAs) and the traditional healers is also receiving national recognition (GHS 5-year
Volta Region (Volta Regional Health Directorate) has a total of 326 health institutions
out of which 242 are Ghana Health Service administered ones( under the supervision of
Volta Regional Health Directorate), 18 are Mission owned, One facility is quasi-
government (that is the military hospital MRS) at the 66 Artillery regiment in Ho, and 65
privately owned. It is worth noting that many of the Ghana Health Service run health
centers were community initiated. In exception of Krachi East, Nkwanta North and
Adaklu Anyigbe, every district now has a hospital either government or mission owned
Inventory management systems obtain and move supplies and equipment to places where
they are needed in a timely manner and at an optimum cost. Supplies and equipment
usually cannot go directly from their source to the end user. They frequently must be
equipment are held at all levels in the Ghana Health Service (GHS). The inventory
management system recognizes that staffs at all levels have a wide range of
responsibilities.
Access to essential medicines and supplies is fundamental to the good performance of the
medicines and supplies is commonly cited as the most important element of quality by
healthcare consumers and the absence of medicines and supplies is a key factor in the
At the national level, health commodities are procured from three sources namely;
• Manufacturers of pharmaceuticals and medical goods on the international market.
• International organizations.
All commodities procured at the national level are therefore stored at the Central Medical
Stores (CMS), Tema. The Tertiary Hospitals, Regional Medical Stores and even private
sector suppliers then get their supplies from the Central Medical Stores.
At the regional level, health commodities are procured from two sources namely;
All commodities procured at the regional level are then stored at the various Regional
Medical Stores (RMS) situated in all the ten (10) regional capitals in the country.
Hospitals and other facilities in the various regions also procure from the two sources
where the regional level procurements are done, but these are done by first visiting the
Regional Medical Stores (RMS), and if they are not able to obtain their requirements,
they are then given a non-availability certificate which allows them to go ahead and do
Therefore, in the Ghana Health Service (GHS), after the commodities have been
different levels before reaching the health facilities where they are dispensed to clients.
demand that can be satisfied by having product readily available when the customer
needs it.
Quality care cannot be provided on time unless required material is available in adequate
relation to three vital aspects of medical supplies used in the health facilities;
The time factor is probably not as crucial in any other field as it is in healthcare delivery,
where delay by a few seconds can cost a life. Therefore, inventory managers have the
The safety of patient is the top priority in healthcare, and inventory managers play a
crucial role in protecting their intent. The biggest responsibility of an inventory manager
is to ensure that the commodities purchased for clinical use are of good quality. Despite
cost being an important criterion in assessing commodities, safety and clinical efficacy
concerns are prioritized. Inventory managers also need to ensure that stocked
measures. While the cost of medical supplies has been spiraling up, greater numbers of
patient are demanding high quality and reasonably priced healthcare services. Since cost
continuously strive to get better deals. Economical prices help ensure affordable
healthcare for vast majority. The healthcare facility in turn reaps the benefit of better
The medical supplies industry is flooded with innovative products and services.
product/technique that can give better outcome. While cost is an important criterion,
quality of the product needs to be the primary concern to ensure that patient care is not
compromised.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter addresses the research design employed to investigate the research topic. It
Furthermore, the procedure and measuring instrument used to gather the data were
discussed. Finally, the statistical techniques used for data capture, analysis and
Exploratory design was adopted in carrying out the study, since the association of
Exploratory design was used because, it enabled the researcher to explore new
healthcare delivery and gave the researcher the ability to arrive at new innovative results.
The study focuses on how inventory is managed at the Ghana Health Service facilities in
the Ho municipality, and how these facilities use the inventory to provide service to their
clients. The facilities are the Regional Health Directorate; the Regional Medical Stores;
the Municipal Health Directorate; the Public Hospitals, the Polyclinic; Public Health
Centers; Clinics; Maternity Homes; Reproductive and Child Health Centers; and
The population refers to the entire group of people from which data can be sourced and
With reference to the scope of this study, the population consisted of healthcare providers
managers (Store Managers, Supply Officers, and Storekeepers); and healthcare receivers
The researcher adopted the stratified sampling method to choose the respondents. The
respondents were divided into three (3) strata in order to ensure that each was
Probability sampling was used in the selection of the health facilities, to eliminate as far
In the conduct of this study, the questionnaire (survey) method was adopted. This method
enabled the collection of a large amount of data on the variables that were considered
important to the research. Furthermore, questionnaire survey afforded the respondents the
The respondents interviewed were selected from all the four (4) hospitals; regional
medical stores, Ho municipal health directorate; six (6) health centers; three (3) clinics;
three (3) maternity homes; two (2) CHPs zones; and three (3) reproductive child health
centers.
Simple random sampling method was used to select the facilities and the respondents. To
meet the interest of the researcher, seventy-eight (78) people were selected for the study.
These comprised of three (3) doctors; two (2) medical assistants; fifteen (15)
The sample represented a subset of the population and gave a fair and equal opportunity
The purpose of the research was explained to every respondent. They were also informed
that participation was voluntary and that the results would be used for academic purposes.
Furthermore, respondents were assured that all responses would remain confidential.
3.6 RESEARCH INSTRUMENT
The data was collected by means of questionnaires. Questionnaires were used because it
was relatively more economical and convenient for the respondents to answer.
Secondly, it encouraged the provision of a true and honest response on sensitive issues.
The questionnaires afforded the researcher the opportunity to collect information that was
not readily available, which tend to enrich the answers and that enhanced the eventual
This was to allow the researcher to get good responses from the different group of
respondents.
Again, personal interviews were done for respondents who do not had time to answer the
questionnaires and especially healthcare receivers (clients) who cannot read and/or write.
The raw data was captured using the Statistical Package for Social Sciences (SPSS),
presented and analyzed using descriptive statistics such as frequency distribution and
percentages. The researcher used these methods because they provided better explanation
CHAPTER FOUR
OVERVIEW
This chapter covers the results and discussions of data collected through questionnaires
The results and discussions of questionnaires are presented below. Firstly, the results for
age, sex, and marital status for all respondents were discussed, after which the three sets
Majority of the respondents who took part in the survey were males (66.7%).
Out of the 18 respondents, 12 representing 66.7% were married, 5 have not married
before, and 1 representing 5.5% was separated. All respondents were between the ages of
20 to 59, indicating that the respondents are very active. See table 4.1 below for details.
20 – 29 0 2 2
20 – 29 0 1 1
30 – 39 3 1 4
Married 40 – 49 5 0 5 66.7
50 – 59 2 0 2
Seperated 50 – 59 1 0 1 5.5
Total 12 6 18 100
Out of the 18 inventory managers, 11 (61.1%) were officers in the supply chain
profession (Storekeepers, Supply officers and Inventory managers). This indicates that
majority of the respondents are professionals in the field, as shown in table 4.2 on next
page.
Pharmacist 2 11.10
Total 18 100
Majority (44.5%) of respondents for inventory managers were either ‘O’level, ‘A’level or
SSS certificate holders. Six (6), representing 33.3%, were HND holders, whiles four (4)
of the respondents, representing 22.2% were BA/BSc holders. Out of the 18 respondents,
twelve (12), (66.7%) were males, with 6 (33.3%) as females. This indicates, majority of
the respondents were energetic, their level of education were encouraging, as inventory
management is mostly taught from the HND levels. Refer to table 4.3 in Appendix IV.
Sixty-five, point two percent (65.2%) of the respondents play the roles of inventory
management, 17.4% as supervisors, 8.7% as procurement and 8.7% as users of the health
commodities. This therefore implies that, majority of the respondents were responsible
for receiving, storing, controlling and distributing of the health commodities. Refer to
With regard to the number of years that respondents have worked in health commodity
management, 9 (50%) have worked for over 6years, 3 (16.7%) have worked between 4 to
6years, 4 (22.2%) have worked between 1 to 3years, with only 2 (11.1%) of the
respondents working for less than a year. The result therefore indicates that, majority of
the respondents have experience in health commodity management, since twelve (12) of
the respondents, representing 66.7% have worked for more than four (4) years as
inventory managers.
COMMODITY MANAGEMENT
Fig. 4.2 on next page, shows that only 1 (5.56%) respondent never had any form of
training in health commodity management. This implies that, 94.44% of the respondents
have had training in health commodity management. This therefore means majority of the
respondents have been train in receiving, storing, controlling and distribution of health
commodities.
100
90
80
70
Percentages (%)
60
50
94.44
40
30
20
10
5.56
0
Yes No
Management.
Most of the respondents (38%) depend on user requirements to select the health
commodities for their facilities. 19% each uses the essential medicine list and non-
medicine list respectively. Most of the respondents use almost all the multiple choice
answers in selecting the commodities. This implies that, they use the essential medicine
list and non-medicine list, they also depend on the services provided as well as the
requirements from the users, this makes it possible to meet the policy requirements
(essential medicine list and non-medicine list) and at the same time meet the
40
35
30
25
Percentage (%)
20
38
15
24
10 19 19
0
Essential Medicine List Non-Medicine List Services Provided User requirement
Sixteen (16) respondents representing 88.9% out of the 18 respondents said they establish
maximum, minimum and re-order levels for all health commodities. This implies,
majority of the respondents control their stock levels to help reduce or eliminate stock-
outs, over-stocking and obsolete stocks. Refer to table 4.4 in Appendix IV.
50
45
40
35
Percentage (%)
30
25
43.75
20
15
25
10 18.75
5 12.5
0
Weekly Monthly Quarterly Semi-annualy
4.1.10 STOCKTAKING
Sixteen (16) respondents representing 88.9% out of the 18 respondents said they do
stocktaking for all health commodities. This implies, majority of the respondents take
stock to compare their physical stock against the book balance to check whether there are
stocktaking, with 12.5% and 6.25% doing semi-annually and monthly stocktaking
respectively. Stock taking usually takes a lot of time, therefore weekly stocktaking may
hinder smooth stock management, since the officer may not have enough time for other
All the 18 respondents maintain separate records for all health commodities in their
facilities. This implies there will be easy tracking of transactions and easy location and
identification of commodities.
Majority of the respondents (72.22%) use their past consumption to determine the
quantity of health commodities needed. 11.1% of the respondents use the request made
by the users to determine their quantities. 5.56% each uses availability of funds,
dispensed to user data, and seasonal variations respectively to determine the quantity of
calculate the stock control work sheet to get the stock levels (maximum, minimum and
Some respondents used more than one technique in inventory management of their
commodities. 18 respondents were asked this question, but the responses were 21. This
means 3 respondents uses two different types of techniques. This implies that majority
(47.64%) of the respondents use EOQ, which is a technique that suggests that the optimal
level of inventory that an organization should keep must help to reduce the cost of doing
business. 33.34% use ABC analysis, which suggests that though all categories of
inventory are important, inventory must be categorized or classified in accordance to
their relative impact or value and treated differently. 19.02% of respondents use MRP
technique which helps reduce holding cost. See table 4.5 below.
Total 21 100
Only 5.6% of the respondents receive commodities from the District Directorate Store.
No respondent receives commodities from a single source. The commodities are received
from the Central Medical Store (CMS), the Regional Medical Store (RMS) or from
Private Suppliers, depending on the commodity and its availability at the CMS or RMS.
This implies that CMS and RMS are not able to meet facility’s demands.
order is placed. 27.8% of respondents receives their commodity in less than a week,
whiles 5.5% receives commodities between 5 to 8weeks after an order has been placed.
This implies, proper planning and stock control must be done to avoid stock-outs since
Fourteen (14), being (77.8%) of the respondents have experienced stock-out before, with
only 4 (22.2%) of the respondents saying they have never experienced stock-out. This
implies that the flow (distribution) of commodity from the source to facility is not the
There were multiple responses (23) from the 14 respondents to this question.
This implies that respondents have more than one way of dealing with such situations.
34.8% of respondents place an emergency order for the commodities that are out of stock,
4.3% ask the client to go and purchase the commodities from outside the facility (town),
26.1% borrow from other facilities, and 34.8% forward a requisition to CMS or RMS for
the commodities. This situation therefore puts the clients at risk, since service delivery
would be delayed.
There were multiple responses (23) from the 18 respondents to this question. This implies
that respondents have more than one way of dealing with such situations. Majority of the
respondents (43.5%) said they contact other sources of supply for the commodities.
30.5% of the respondents, make requisitions to CMS and RMS for the rest of the
commodities. 21.7% place emergency order for procurement, whiles only 1 (4.3%) waits
Again, there were multiple responses (24) from the 18 respondents to this question. This
implies that some of the respondents have more than one way by which commodities gets
to the facilities. Majority (75%) of respondents go for the commodities themselves, the
commodities are delivered to 20.8% of respondents, whiles the suppliers deliver to only
4.2% of the respondents. This implies, 75% of the respondents (inventory managers)
have to leave their jobs and travel long distances for health commodities. One may ask,
what happens if commodities are needed for service delivery in their absence. See Fig.
4.6 below.
80
70
60
50
Percentages (%)
40
75
30
20
10 20.8
4.2
0
Delivered by supplier Deliver to the facility Facilities come themselves
Ten (10), being (55.6%) out of the 18 respondents said the head of the various
departments or units, 6 (33.3%) respondents said the Stores and supplies unit of the
committee.
The respondents mentioned waybills; stores issue vouchers and receipts as some of the
documents they use as evidence for inspecting commodities when they are receiving
majority of the respondents do thorough inspection for quality of health commodities that
Majority (63.6%) of the respondents do the inspection of the commodities after the
commodities have been unloaded from the vehicles. 22.7% of respondents inspect the
commodities before storing them. 9.1% inspects the commodities before they are
unloaded from the vehicles, whiles only 4.6% of the respondents do the inspection after
Sixteen (16) respondents (88.9%), have seperate locations for quarantine commodities,
with only 2 (11.1%) not having separate location for quarantine commodities. This
implies, majority of the respondents have separate locations for usable and non-usable
Out of the 18 respondents to this question, 2 representing 11.1% use the first in, first out
(FIFO) method, whiles 16 (88.9%) respondents use the first expiry, first out (FEFO)
method. This implies, irrespective of the arrival of the commodity, majority of the
respondents issue out the one that has the date nearer to expiry first. This method help to
eliminate or reduce expired commodities in the system. See Fig. 4.7 below.
100
90
80
70
60
percentages
50
88.9
40
30
20
10
11.1
0
FIFO FEFO
Source: Fieldsurvey,May,2012
Seventeen (17), being (73.9%) responses were for approved requisitions, whiles 6
This means that, before an issue is made there should be an approval from an authorized
There were 31 responses from the 18 respondents, with majority (32.3%) of the
whether proper inventory management practices are adhered to. 22.6% of the respondents
minimum and re-order). 19.4% also said, an effective scheduled delivery system, where
the CMS and RMS must collate all requirements of all the facility and deliver the
commodities to them as scheduled. 16.5% of the respondents also think that there must be
accurate record keeping by all those who matters in commodity usage. See table 4.7 on
next page.
Table 4.7 Getting Commodities Readily Available as and when Needed
Total 31 100
Out of the 30 respondents, 18 representing 60% were married, 9 have not married before,
two (2) were divorced, and 1 representing 3.3% was separated. All respondents were
between the ages of 20 to 59, indicating that the respondents are very active. The
respondents were fifteen (15) males and fifteen (15) females. See table 4.8 on page 54 for
details.
Table 4.8 Age, Sex and Marital Status of Healthcare Providers
Sex Percentage
20 – 29 0 4 4
30 – 39 4 2 6
Married 40 – 49 4 2 6 60.0
50 – 59 1 1 2
Seperated 50 – 59 1 0 1 3.3
Divorced 50 - 59 1 1 2 6.7
Total 15 15 30 100
Majority (53.3%) of the respondents were prescribers, 26.7% were supervisors, 13.3%
This implies majority (prescribers and dispensers, 66.6%) of the respondents deals
directly with the clients and the commodities, with 26.7% (supervisors) over-seeing the
dealings between the providers and the clients. Thus, majority of the respondents were
In terms of position of respondents in the organization, 50% were Nurses, 16.7% were
Pharmacists and Pharmacy technicians, 10% were Medical officers, 10% were
Biomedical scientists and Laboratory technologist, with 3.3% each been Hospital orderly
and an Accounts officer respectively. This therefore implies that, 93.3% of the
respondents are ‘critical staff’, with only 6.7% been ‘supporting staff’. This means that
majority of the respondents were professional healthcare providers who knows what their
Out of the 30 respondents, 14 (46.7%) were males and 16 (53.3%) were females. Thirteen
(13), representing (43.3%) of the respondents were between the ages of 20 to 29years, 6
(20%) each were between the ages of 30 to 39 and 40 to 49years respectively, with 5
(16.7%) between the ages of 50 to 59years. This implies the respondents were matured
and energetic. Majority of respondents (90%) had their educational qualifications from
diploma and above, with only 6.7% and 3.3% having certificate in nursing and middle
school leaving certificate respectively. This means majority of the respondents were well
MDchb 30 – 39 1 1 2 6.7
50 - 59 1 0 1 3.3
MBA/MSc 40 – 49 1 0 1 3.3
50 - 59 3 0 3 10.0
BA/BSc 30 – 39 1 0 1 3.3
40 – 49 2 2 4 13.3
HND 20 – 29 4 2 6 20.0
30 – 39 0 1 1 3.3
30 - 39 0 2 2 6.7
40 - 49 0 1 1 3.3
MSLC 50 – 59 0 1 1 3.3
Total 14 16 30 100
MANAGEMENT
Forty percent (40%) of the respondents have worked for over 6years in this capacity.
26.7% each have worked between 1 to 3years and 4 to 6years respectively in this
capacity, with 6.6% working for less than 1year in this capacity. This implies majority of
commodity management. Though majority have been trained, healthcare delivery and
health commodities are very critical to the clients, and for that matter, all the providers
Most of the respondents (83.3%) depend on services provided at the facility to select the
health commodities. 40% uses the essential medicine list and 16.7% use the non-
medicine list. Most of the respondents use almost all the multiple choice answers in
selecting the commodities. This implies that, they use the essential medicine list, the non-
medicine list, and they also depend on the services provided by the facility. This makes it
possible to meet the policy requirements (essential medicine list and non-medicine list),
as well as meet organizational policy (service provided). Table 4.11 on page 58 provides
Majority (76.7%) of the respondents establish stock levels for their commodities. This
implies, majority of the respondents control their stock levels to help reduce or eliminate
All respondents update their stock levels, 34.8% each do it weekly and monthly
When the above question was asked, all the 30 respondents said that they maintain
Majority of the respondents (56.5%) use their past consumption to determine the quantity
of health commodities needed. 32.6% of the respondents use the request made by the
users to determine their quantities. 10.9% uses availability of funds to determine the
quantity of commodity needed. Though all responses must be considered, in stock
management, the past consumption is what is used to calculate the stock control work
sheet to get the stock levels (maximum, minimum and re-order). See Fig. 4.8 below.
60
50
40
percentages
30
56.5
20
32.6
10
10.9
0
Past Consumption Request from Users Availability of funds
Majority (54.2%) of the respondents receive commodities from the facility store, 37.5%
from the Regional Medical Store, and 8.3% from Central Medical Store. No respondent
receives commodities from a single source. The commodities are received from the
facility’s store, the Regional Medical Store (RMS) or from Central Medical Store (CMS),
have been placed. 10% of respondents receives their commodity between 2 to 4 days,
whiles 6.7% receives commodities between 5 to 7days after a request has been placed.
All the 30 respondents said they have experience a situation where they run short of
commodities whiles rendering service. When asked what they do in such a situation,
majority (53.3%) said they ask the clients to buy from town. 26.7% said they place an
emergency order for the commodities, whiles 20% said they go to borrow from other
facilities. This implies the clients are at risk, because who knows whether they actually
go to buy at all or whether the commodities were of the approved standards. Refer to Fig.
When the respondents were asked the question above, 18 representing 60% of the
respondents were of the opinion that, there should be a good commodity planning by the
management of all the facilities. 12 respondents (40%) were of the opinion that, adequate
stocktaking should be done for all health commodities in all health facilities.
Majority of the respondents who took part in the survey were males (66.7%).
Out of the 18 respondents, 12 representing 66.7% were married, 5 have not married
before, and 1 representing 5.5% was separated. All respondents were between the ages of
20 to 59, indicating that the respondents are very active. See table 4.12 below for details.
Table 4.12 Distribution of Respondents by Age, Sex and Marital Status of Clients
Sex Percentage
10 – 19 1 0 1
20 – 29 2 0 2
30 – 39 2 5 7
Married 40 – 49 3 4 7 73.3
50 – 59 3 3 6
Seperated 30 – 39 0 1 1 3.3
Divorced 40 - 49 0 1 1 3.3
Total 14 16 30 100
Out of the 30 respondents, 15 were males and 15 females, with 83.7% between the ages
of 20 to 59years. When the above question was asked, 12 (40%) of the respondents were
visiting the facilities for the first time, with 18 (60%) respondents haven visited for more
than once.
4.3.3 REASONS FOR CHOOSING THIS FACILITY
Majority (40%) of the respondents said they chose the facility due to their service
delivery, 26.6% said because of proximity of the facility to where they live. 20% of the
respondents said they chose the facility because of its popularity, whiles 6.7% each said
they were on referral and recommended by their friends respectively. See Fig. 4.10.
45
40
35
30
Percentages (%)
25
20 40
15
26.6
10 20
5
6.7 6.7
0
Service Facility popularity Proximity On referral Recommended by
satisfaction friends
Twenty-seven (27) representing 90% of the respondents were given folders when they
visited the facility. Out of the 27 respondents who were given folders, 51.9% spent
between 15 to 30 minutes before they got the folders, 29.6% spent between 40 to 60
minutes, 11.1% spent over an hour, whiles only 7.4% spent less than 10 minutes waiting
for their folders. This implies, clients spend too much time before their folders are given
15 – 30 mins 14 51.9
40 – 60 mins 8 29.6
Total 27 100
Majority of the respondents (50%) waited between 15 to 30 minutes before their history
were taken. 33.3% waited between 40 to 60 minutes before their history were taken, 10%
waited over 60 minutes, whiles only 6.7% waited for less than 10 minutes. This follows
the trend of the waiting time for collection of folders. Refer to Fig. 4.11 in Appendix IV.
Majority (70%) of the respondents said the healthcare provider was available on time,
with 30% saying, the healthcare providers were not available on time.
Also, 73.3% of the respondents said that the healthcare providers spent enough time with
them, whiles 26.7% said the providers did not spend enough time with them.
4.3.7 COMFORTABLE PLACE TO SIT AND CLEAN FACILITY
Majority of the respondents (27 out of 30) replied that, they had a comfortable sitting
place, but 3 respondents replied in the negative. Again, 28 out of the 30 respondents
found the facilities clean, whiles 2 did not. This implies the peer review been done by the
When this question was asked, 90% (27) respondents said the provider explained
everything about the illness and treatment to them, whiles 10% replied that the providers
did not.
Seventeen (17) out of the 30 respondents were asked to visit either the x-ray or the
laboratory or both, whiles 13 did not. Fifteen (15), being (88.2%) of those who were
asked to go for x-ray and/or laboratory said the services were provided at the same
facility, whiles 11.8% had to go for these services outside the facility. This implies that
When this question was asked, 50% of the respondents had all their medicines prescribed
to them at the facility, whiles the other 50% did not had all their medications at the
Majority (90%) of the respondents said they will visit the facilities again when the need
arises and also recommend the facilities to their friends and relatives, but 10% of the
respondents said they will not visit the facilities again and neither will they recommend it
to anybody.
Out of the 27 respondents who said they would visit the facilities again, 15 (55.6%) said
they had better service delivery, 18.5% said they would do that due to proximity
advantage, 14.8% were due to the availability of modern facilities at the place, whiles
11.1% had no other choice. The 3 respondents said they will not visit or recommend the
facilities because their problems were not solved. See Fig. 4.12 below.
60
50
40
Percentages (%)
30
55.6
20
10 18.5
14.8
6.7
0
Better service delivery Availability of modern Proximity No other choice
facility
Majority (83.3%) of the respondents were satisfied with the service delivery at the
facilities, but 5 (16.7%) of the respondents were not satisfied with the service delivery.
Forty (40) responses were received from the 30 respondents. Table 4.14 below explains
From the responses above, it can be deduced that majority of the clients that visits our
facilities wants the facilities to be stocked with medicines and also wants the facilities to
be upgraded to meet modern standards. Some of the Clients are also of the view that the
staff strength at the facilities must be increased to reduce the staff to client ratio.
CHAPTER FIVE
OVERVIEW
This chapter presents the conclusion and recommendations for improving inventory
whole.
5.1 CONCLUSION
It was established that health commodities needed were determined based on past
consumption. This system helps not to over-stock the commodities, but it does not make
provision for commodities that were out of stock at the period and also does not take into
account the increase in demand for the commodities as the population grows.
Furthermore, it was established that most of the facilities use the Economic Order
Quantity (EOQ) technique which focuses more on minimizing inventory itself in the
management of their inventory, this technique helps to reduce cost of operation, but it
does not take into accounts the value or relative impact of the individual commodity and
Also, majority of inventory managers and healthcare providers leave their jobs or
facilities and travel long distances for the health commodities from either the Central
Medical Stores (CMS) or the Regional Medical Stores. In most cases, these inventory
managers happened to be the only staff at the department or unit, thus depriving the
Again, it was established that though majority of the facilities use the first expiry, first
out (FEFO) method in storing and issuance of commodities, some facilities still use the
first in, first out (FIFO) method which takes into accounts the arrival of the commodities
Another thing established was the shortages of health commodities that providers
experience when rendering services to clients. This situation leaves clients with no other
choice but to fall on the traditional medicines or travel over long distances in search of
healthcare or seek spiritual assistance from churches, shrines, witch doctors and so on.
It was established that most medicines prescribed to clients by providers were not
available at the facilities. Clients therefore visit pharmacy and license chemical shops for
their medications. There is no guarantee that the clients are able to get the prescribed
Last but not least, it was established that majority of the healthcare providers were of the
opinion that there should be a good health commodity planning by the management of all
the facilities, so that commodities are really available for use as and when they are
needed. Clients on the other hand were of the opinion that the health facilities should be
upgraded to meet modern standards and stocked with medicines. This will intend
Based on the conclusion drawn from this study, the following recommendations were
on quantity of commodities requested and not only the past consumption. This will make
provision for quantities requested for, but was not received and consumed for a period
and therefore eliminate or reduce stock-outs. The main purpose for inventory
Secondly, the researcher recommends that in addition to the Economic Order Quantity
(EOQ) technique -- the technique that determines the point at which the combination of
order costs and inventory costs are the least, the ABC Analysis which suggests that
classified in accordance to their relative impact or value and treated differently must be
used. This does not mean that some commodities are less important, but relates to the fact
that all commodities in the A, B, and C categories are important to some extent and that
The researcher also recommends that health commodities must be delivered directly to
the facilities from the upper level facilities, Central Medical Store (CMS) and Regional
deliveries and results in overall time and cost savings. The staff at the health facilities
now spend more time serving the external customer, the client, rather than filling out
complicated forms, implementing time consuming procedures and leaving their post to
travel over long distances to go to the Central Medical Store (CMS) and Regional
The researcher further recommends that all facilities must use the first expiry (FEFO)
method in the storage and issuance of health commodities. Since the efficacy and quality
of all health commodities are paramount, the expiration of all health commodities must
be considered. The FEFO method is considered the best because, a commodity can be
received which may have the expiry date nearer than that same type of commodity that is
already stocked.
Lastly, as the safety of a patient is the top priority in healthcare delivery, the
when needed; and ensure that the commodities purchased for clinical use are of good
quality. The researcher recommends that there should be proper inventory control
methods by setting accurate stocks levels for all commodities and requesting the accurate
quantities of commodities from the Regional Medical Stores. The Regional Medical
Stores and Central Medical Store must also make sure that they use the data (requisitions)
from the facilities as a guide to procure the right quantity of commodities and deliver
directly to the facilities on time. This would therefore reduce or eliminate stock-outs in
the facilities. Whiles inventory is concerned with monetary issues, health facilities are in
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Issue in Brief”, Washington, DC: U.S. Agency for International Development, Partners
Chopra, S. and Meindl, P. (2003), Supply Chain Management: Strategy, Planning and
Operation, 4th Edition, Pearson Prentice Hall, Upper Saddle River, New Jersey.
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Dave P. (2001), “Optimizing economic order quantity” Solution magazine, January, 2001
issue.
Ho Municipal Health Directorate (2011), The 2011 Annual Performance Review Report,
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Mills, A., Brugha, R., Hanson, K., and McPake, B. (2002), The Challenge of Health
Rick L. (1998), “Can you profit from improved Inventory Control?” – Journal of
Schieber, G. and Akiko, M. (1999), Health Care Financing and Delivery in Developing
Stock, J. R., and Lambert, D. M. (2001), Strategic Logistics Management, 4th Edition,
Vollman, T. E., Berry, W. L., and Whybark, D. C. (1988), Manufacturing Planning and
Volta Regional Health Directorate (2010), The 2010 Annual Performance Review
Report, Ho.
Wallin, C., Rungtusanatham, M. J., and Rabinovich, E., (2006), “What is the ‘right’
Operations & Production Management. Bradford: Vol. 26, Iss; pg. 50.
World Health Organization (2000), The Implications for Training of Embracing a Life
World Health Organization (2000), The World Health Report 2000, Geneva.
World Health Organization (2002), The World Health Report 2002, Reducing Risks,
Zellner, S., O’halon, B., and Chandani, T. (2005), State of the Private Health Sector Wall
APPENDIX I
QUESTIONNAIRE FOR INVENTORY MANAGERS AT GHS FACILITIES
INTRODUCTION
I am a CEMBA student of KNUST, conducting a research into the inventory
management in the Ghana Health Service, and its role in healthcare delivery. You have
been identified as someone who can assist by responding to the questionnaire intended
for the research. I wish to assure you of utmost confidentiality of any information you
may provide and also that your responses are only for the purposes of this research,
Thank you.
BACKGROUND INFORMATION
e) 50 – 59 f) 60 and above
c) Divorced d) Seperated
e) Widowed
6. How would you describe your role in the health commodity management?
a) Procurement b) Inventory Management
c) User d) Supervisor
10. Do you establish Maximum, Minimum, and Re-order levels for the health
commodities? a) Yes b) No
11. If yes to question 10, how often do you update these levels?
d) Bi-annually e) Annually
a) Yes b) No
19. From where does your facility receive its health commodities?
a) Central Medical Store b) Regional Medical Stores
c) Private Supplies d) District Directorate Store
e) Others (specify)…………….................................................................................
20. How long does it take your facility to receive commodities once an order has been
placed?
a) less than 1week b) 2 to 4weeks
c) 5 to 8weeks d) 3 to 4mths
e) 5mths and above
21. Have you ever experience Stock-Outs? a) Yes b) No
22. If yes to question 20, how did you deal with the situation? ...................... ............
......……………………………………………………………………………………
……………………………………………………………………………………
23. What do you do if your ordered quantities are not met? ………………………
…………………………………………………………………………………………
……………………………………………………………………………………
24. How do the commodities get to the facilities/clients?
a) We deliver to the facility
b) The facility comes for it themselves
c) Others (specify) ………………………………………………………………
25. Who determines the quantity of commodities to be ordered?............. …… ……
………………………………………………………………………………………
PRODUCT RECEIPT, STORAGE AND ISSUES
26. What are some of the documents received along with the commodities?
…………………………………………………………………………………………
……………………………………………………………………………………
27. How is inspection of commodities done at your facility?
a) 100% inspection b) Random sampling inspection
28. At what stage of commodity arrival is inspection done?
a) Before Unloading b) After Unloading
c) Before Storage d) After Storage
28. By which method are commodities stored and issued in your facility?
a) First In, First Out (FIFO) b) Last In, First Out (LIFO)
a) Yes b) No
31. What do you do when you are not able to meet a facility’s request?
………………………………………………………………………………………………
………………………………………………………………………………………………
32. What do you think should be done to get commodities readily available to your
facility as and when they need them without over stocking? ……………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
APPENDIX II
INTRODUCTION
e) 50 – 59 f) 60 and above
c) Divorced d) Seperated
e) Widowed
6. How would you describe your role in the health commodity management?
a) Prescriber b) User
c) Supervisor b) d) Others (specify) ………………………
12. How many years have you been working in this capacity?
a) < 1 b) 1 – 3
c) 4 – 6 d) > 6
13. Have you ever received any training in health commodity management?
a) Yes b) No
PRODUCT SELECTION, QUANTIFICATION AND CONTROL
a) Yes b) No
APPENDIX III
INTRODUCTION
BACKGROUND INFORMATION
e) 50 – 59 f) 60 and above
c) Divorced d) Seperated
e) Widowed
Inventory Managers
20 – 29 1 1
30 – 39 1 1
‘A’/’O’/SSS 40 – 49 2 1 8 44.5
50 - 59 1 0
30 – 39 2 2
HND 40 – 49 1 0 6 33.3
50 - 59 1 0
30 – 39 2 1
BSc/BA 40 - 49 1 0 4 22.2
Total 12 6 18 100
Table 4.4 Establishment of Max, Min, and Re-order level by Inventory Managers
Yes 16 88.9
No 2 11.1
Yes 16 88.9
No 2 11.1
Pharmacist 3 10.0
Midwife 4 13.3
Total 30 100
60
50
Percentages
40
30
20
10
0
Inventory Mgt Supervisors Procurement Users
80
70
72.2
60
50
Percentages
40
30
20
10
11.1
0 5.6 5.6 5.6
Past Consumption Request by Users Availability of Disp. To user Data Seasonal
Funds Variations
50
40
Percentage
30
20
10
0
Buy from town Emmergency order Borrow from others
60
50
50
40
Percentage
30 33.3
20
10
10
6.7
0
Less than 10mins 15 to 30mins 40 to 60mins over 60mins