Economic Order Quantity Stock Control Technique and Performance of Selected Level Five Hospitals: An Evidence of Kenya

Abstract

Health sector is considered as one of the most important sectors in any economy because the wellness of a country depends on the wellness of its citizens. This can be only achieved when there is an efficient and effective health system in the country. Despite many government interventions to ensure that services are not interrupted in public hospitals in Kenya, there are still many challenges as pertains to efficient stock management leading to frequent stock outs. The paper main focus was to establish the relationship between Economic Order Quantity stock control technique and performance of selected level five hospitals in south rift region, Kenya. Which used economic quality theory. A correlation study design was appropriate. A target population of 248 employees comprised of staff working under procurement and supply chain department who were handling material acquisition, stock control department, record department and disposal department in the selected level five hospital. Purposive sampling technique was used to select 156 respondents where questionnaires were used for data collection. Data was analyzed descriptively and presented using frequency tables. Inferential statistics was also analyzed using regression models. The study findings revealed that economic order quantity had a positive statistical relationship with performance of the level five hospitals of β =0.316, P<0.000. The study recommended that the hospital should always evaluate the time taken in replenishing stocks. The study findings may be beneficial to stakeholders for better policy formulation and scholars who will be interested in this area of study as they will use this study as a source of their secondary data.