Effectiveness of Inventory Control System in The Public Health Sector in Tanzania

Abstract

The main objective of this study was to assess effectiveness of inventory control system in Tanzania public health sector. Inventory control take above 45% of all costs associated with inventory control system which is needed to ensure that the business has the right goods on hand to avoid stock outs, to prevent decline, and to provide proper accounting. The study was conducted to assess the effectiveness of inventory control system at MSD. Descriptive research design was used in executing the study and sampling technique used was purposive sampling, where by data were collected using questionnaires. Findings on different types of inventory control technique, revealed that EOQ is the best and favorable technique used, but the costs incurred through inventory management; such as holding cost, stock out cost or stock in warehouse including expired stock do not meet the demands of customers. In conclusion, the study aims and objectives were achieved and improvement strategies were identified as intended. Furthermore, roles, challenges, practices and management strategies developed could be practically applied as knowledge contribution. Some of recommendations are: The Company should improve its central data base for archiving the inventory records to enable easy monitoring, decision making and proper inventory management. Inventory management procedures should be put in place to allow Proper management of inventory in a cost effective manner. In order to reduce rate of expiries stock Management of MSD should Improve forecasting quantification data accuracy, ensure FEFO adherence during picking and issuing and Aggressive sales and Immediately commencement of distribution of near to expire medicine.