Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 8

Inventory Management and Control Systems in Covid-19 Pandemic Era: An Exploratory Study of Selected Health Institutions in Anambra State, Nigeria constant, and that there is no stock-outs . However, the assumptions seem not to be realistic in practice and this system may not be suitable in health sector due to the unpredictable pattern of demand. However, demand for medical supplies seem to be on the increase as more and more persons get sick due to covid-19 and other related diseases. One notable weakness of this system is its failure to consider buffer stocks that should be maintained to accommodate for variations in lead-time and demand for inventory. ii. Inventory Control system (ICS) using optimal stock level According to the views of Wanyoike and Tundura (2016), inventory control (IC) refers to a set of procedures and techniques that are used to oversee and control ordering, storage and use of inventory resources. Onikoyi, Babafemi, Ojo and Aje (2017) defined inventory control as the process of supervising the storage, the supply and the accessibility of items to ensure an adequate supply of inventory without over or under supply. Inventory control is carried out to make sure that only the adequate amount of inventory are available whenever and wherever required by customers. The distinction between IC and IM is that whilst IM refers to all the activities that are done in the process of procuring, storing, selling, disposing or using inventory while IC is a subset i.e a part of inventory management. However, managers assume that once they are good with inventory management then the firm is safe in terms of the possibility of having under or excess stock level. This is where IC comes in to control the flow of inventory so that only the optimal stock level would be maintained in the firm. The necessity for inventory control is that sufficient and appropriate quantity of inventory is required each time in order to minimize the rate of stock-outs in the firm, and thereby unnecessarily increasing the stock-out cost of the firm which is the cost incurred when the firm is not able to meet current external and internal demand for inventory. IC often reveals the continuity chances of a hospital because a hospital requires some level of stock that will keep the firm running which extant literature have enlisted as cycle inventory, safety inventory, speculative demand inventory and dead inventory (Okerulu, 2019). Onikoyi, Babafemi, Ojo and Aje (2017) was of the opinion that corporate managers require both reliable and effective control of inventory resources so that the operating cost of the firm will be maximized for the sake of remaining viably competitive. Inventory control practically enhances firm profitability since it can bring about reduction in corporate operating costs that are associated with handling and storage of inventory. This sis further justified by Iliemena and Amedu (2019) which opine that cost reduction strategies should be the focal point of management if sustainable profit is aimed. Thus, it is against the undesirable reality of having excessive inventory or having insufficient inventory that IC has become a very highly placed strategic management technique. Excessive inventory ties down the funds of the organization, increases the possibility of inventory deterioration, obsolescence and theft and also increases holding cost. Still, inappropriateness of insufficient stock is such that it can interrupt the process of production and distribution of goods and services, especially for hospitals and pharmaceuticals firms, proper inventory management and control cannot be over-looked. Thus, hospitals are at all times expected to have an optimal stock level that both caters for customers’ demand and minimizes the cost of holding the inventory. Operational efficiency is therefore guaranteed by optimal stock level which eliminates the possibility of stock-out, especially in emergency cases. iii. Leveraging inventory Management and Control in Health Institutions in the COVID-19 pandemic period Health institutions often make managerial efforts to reach corporate decisions while providing strategies that are required for the effective management of the firm’s resources and this has not changed in the period of covid-19 pandemic. Certainly, the stock of medical supplies is one of the institution’s resources that critically need to be effectively managed and monitored especially considering the economic times of corona virus and its health implications. Opinion exists that the COVID-19 era is associated with global increase in demand for medical supplies which could possibly lead to stock-out while opinion also exist that even though the pandemic has come with a lot health challenges but due to the poverty induced by the virus and the fear of being compelled to isolation centers, sick persons would want to explore other means like off-the-shelf drugs, herbal treatment and home therapies in managing their health issues, thus culminates into low demand for medical supplies. Low demand for medical supplies put a lot of health institutions at risk of incurring losses if not properly managed. This is due to the expiry nature of their products and services. On the other hand, increase in demand for medical supplies in the COVID -19 pandemic periods if not properly managed could lead to stock-out which has damaging effect on the sustainability and overall corporate performance. However, Dedunu and Weerasinghae (2018), and, Iliemena, Goodluck, and Amedu (2020) are of the opinion that large inventory bunch generates extra costs and this lends credence to the ever growing importance of inventory management through which proper managerial attention could be paid to procedures, techniques or processes. This makes inventory management a very crucial decision area for corporate success of health institutions in the pandemic period. According to Bawa, Asamoah and Kissi (2018), IM is necessary mainly because it is one of the ways for health institutions to minimize operating costs and funds 46 Global Journal of Management and Business Research Volume XXII Issue VIII Version I Year 2022 ( ) A © 2022 Global Journals