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 planning. Musau, Namusonge, Makokha and Ngeno (2017) submitted that, based on the lean theory, firms can more successfully find ways of optimizing inventory by way of lean supply chain systems and practices in order to achieve a better level of both asset utilization and customer satisfaction that ultimately result in enhancement of organizational profitability, growth, and operational performance. The relevance of lean theory to this study is because it presented inventory management practices as a vital part of any supply chain regardless of whether the firm operates a product or service supply chain. In the present study, hospitals majorly although not entirely operate a service supply chain but need to match demand and supply in the supply chain while considering uncertainties in the market environment. Analyzing lean theory vis-à-vis the inventory management of hospitals will reveal that most hospitals are beleaguered by ineffective inventory control and the majority of the hospital do not utilize nor implement the basic inventory control concepts and principles for various reasons (Atnafu & Assefa, 2018). Most hospitals rely on imported medical substances or drugs coupled with unnecessary delays and communication problems which all jointly make the calculations of lead time inaccurate. This is the reason lean theory is mostly advocated for as an inventory management tool that best controls the flow of stock for optimal stock levels especially in the corona virus pandemic era. c) Extant Literature and gaps in studies A study carried out by Onuorah (2019) ascertained the effect of inventory management system on corporate performance of a pharmaceutical company (Juhel Nigeria Limited) using descriptive research design. The study sample was 41 full time staff of the company while data were gathered using a structured questionnaire. Data gathered for the purpose of their study were tested using Pearson Product Moment Correlation Coefficient and findings showed IMS significantly affects a firm’s performance. The study only examined one firm, which makes the finding less generalizable. (Iliemena and Amedu, 2019), studied the effect of inventory turnover period on equity of 22 manufacturing companies quoted on the Nigerian stock exchange from the period 2012 to 2018 using ex-post facto research design. Data from the financial statements of the companies were tested using multiple regression analyses and evidence indicated that inventory turnover period has significant positive effect on equity component. The implication of this to our present study is that health institutions are expected to turn over their inventory of medical suppliers soon enough so it would not culminate to loss of equity capital investment. Sequel to the evidence emanating from the manufacturing sector, this outcome may be said to be debatable. Anichebe and Agu (2013) investigated the effect of inventory management on organizational effectiveness using three companies (Yemenite, Hardis and Dromedas, and Nigerian bottling company) in Enugu State using descriptive research method on a a sample of 248. The data gathered using questionnaires and interviews were tested using Pearson product moment correlation co-efficient and regression method. Evidence emanating from the study showed good inventory management is significantly related to organizational effectiveness. By way of limitation, the study failed to gather evidence relating to challenges in their inventory management system. Ogbo and Ukpere (2014) also using a descriptive research design, evaluated the relationship between effective IM and organizational performance as a case study of 7-up bottling company Nigeria. The study sample was made up of 83 respondents while data gathered were tested using Chi-square method. Findings from this study revealed a relationship between operational feasibility and IM and that flexibility in inventory management is key to good corporate performance. Critically, only one organisation was studied by the researchers which made the findings less generalizable. Furthermore, Koin, Cheruiyot and Mwangangi (2014) invstigated the effect of IM on performance of manufacturing sector using 56 out of 459 business process owners. The descriptive study gathered its data using questionnaires. The outcome of the study revealed that IM and supplier relation both has significant effect performance even though order management was found to have just a mild effect. The study however, failed to consider the effect of inventory management system on optimal stock levels of the selected firms. Edwin and Florence (2015) in their study assessed the effect of IM on profitability of the 6 cement manufacturing firms listed on Nairobi stock exchange in Kenya from 1999- 2014 using secondary data from annual reports. The ordinary least square regression results in multiple analyses revealed a negative relationship existing between inventory turnovers, storage cost and conversion period with profitability as measured using return on asset. Thus, since the system of inventory control in manufacturing firms differs from that of hospitals, there is need to carry- out a similar study using evidence from hospitals. Also in Kenya, Mwangi (2016) further investigated IM, profitability and operating cash flow 6 beer distribution companies in Nairobi for a ten years period ranging from 2006 to 2015. The secondary data gathered for the study was analyzed using ordinary least squares regression analyses and findings revealed a significant relationship between IM, profitability and operating cash flows. By way of criticism, the study focused on inventory management practices such as just in time and material requirement planning and did not consider re-order level system, periodic review system and economic order quantity model. In a related study carried out in Nigeria, Etale and Bingilar (2016) focused 48 Global Journal of Management and Business Research Volume XXII Issue VIII Version I Year 2022 ( ) A © 2022 Global Journals