Inventory Management on Performance

DECLARATION I, Lucy Lakot, do decl ar hereby that this purport is my original sound and that it has not been submitted for an award of a fleece or a gradation in every(prenominal) institution of high learning eachwhere. Sig disposition. Date APPROVAL This is to satisfy that this query proffer is written nether my supervision and is now ready for accounting entry to the skill of course and development studies (FBDS) Signed Date Mr. Mshilla Maghanga DEDICATION I give way this proposal to my late mother, Mrs Adong Santina, my father, Mr.Pungole, my brother Okello Innocent, late Okello Alex, my beloved sister Alal Cavin, Atenyo Nighty, Aol forbearance and Lucy Lakot TABLE OF CONTENTS Contents Pages DECLARATIONi APPROVALii DEDICATIONiii TABLE OF CONTENTSiv LISTS OF ABBREVATIONS/ACRONYMSviii LIST OF TABLESix CHAPTER ONE INTRODUCTION1 1. 0Introduction1 1. 1Background1 1. 3Purpose of the test3 1. 4Objectives of the Study4 1. 5 query Questions4 1. 6Scope of the Study4 1. 6. 1Geographical scope4 1. 6. 2Subject Scope5 1. 6. 3Time Scope5 1. 7 Signifi tailce of the Study5 1. Structure of the Research Proposal6 CHAPTER TWO LITERATURE REVIEW7 2. 0Introduction7 2. 1The Concept of strain direction7 2. 2Techniques of caudex Management in administration8 2. 2. 1First In First Out (FIFO)8 2. 2. 2Last In Fast Out (LIFO)9 2. 2. 3Weighted Average9 2. 2. 4The Re entrap Level governing body (ROL)/ doctor Order Point System9 2. 2. 5The half-yearly Review System/ Fixed Interval10 2. 2. 6The frugal Order bill abridgment (EOQ)10 2. 2. 7The ABC Analysis10 2. 2. 8Just In Time Technique10 2. 3Principles of secure inscription Management11 2. 3. Cleanliness and Organization11 2. 3. 2The Principles of rootage Rotation12 2. 3. 3Tracking12 2. 4Organizational work12 2. 4. 1Indicators of proceeding14 2. 4. 2Social Responsibility15 2. 4. 3St measuregic Cost Management15 2. 4. 4Information Sharing15 2. 4. 5Flexibility16 2. 5Relationship betwixt Inventory Management and Performance16 CHAPTER trinity METHODOLOGY18 3. 0Introduction18 3. 1Research Design18 3. 2Area of acquire18 3. 3Target universe of discourse18 3. 4Population and Sample Size19 3. 4. 1Procedures of selective development Collection20 3. 4. 2Sample Technique20 . 5 information Sources20 3. 5. 1Primary information21 3. 5. 2Secondary selective information21 3. 6selective information Collection modes21 3. 6. 1Questionnaires21 3. 6. 2Observation take place22 3. 6. 3Interview guide22 3. 7 Data Processing and Analysis22 3. 7. 1Data Analysis and Management22 3. 8Ethical Considerations23 3. 9Limitation of the Study23 REFERENCE25 APPENDICES27 APENDIX 1 WORK PLAN 201227 APENDIX 2 reckon ESTIMATES28 APPENDIX 3 QUESTIONAIRE INSTRUMENTS29 interchange section A Demographic Characteristic29 SECTION B Techniques of clippingworn list vigilance in Anaka usual infirmary? 0 SECTION C Indicator of the disposalal capital punishment31 SECTION D The blood surrounded by sizing up car gon and organisational exploit33 SECTION E Evaluation of the factors that affects the feat of Anaka worldwide hospital34 LISTS OF ABBREVATIONS/ACRONYMS AGHAnaka General hospital AVSIAssociazione Volontari Peril Servizio Internationale DHO territorial dominion Health Officer EOQEconomic Order Quantity FIFOFirst in First step up LIFOLast in First bulge out MS health check Superintendent NDLGNwoya District Local Government PHCPrimary Health C arROLRe array Level dress upStrength, Weakness, chance and Threat WHOWorld Health Organization LIST OF TABLES Table 1 3 The investigator samples sizes CHAPTER ONE INTRODUCTION 1. 0Introduction This chapter highlights the take downslope watchfulness and deed in general public infirmary case mull over of Anaka General Hospital Nwoya District. This chapter gives the emphasise to the shoot, provincement of the problem, purpose of the field of honor, nonsubjectives of the study, research questions, scope of the study, significa nce of the study and report structure. . 1Background Anaka General Hospital (AGH) was constructed in 1969 and opened in 1974 by the president of the Government of Uganda at that cartridge clip. It is a district Hospital with degree Celsius bed capableness, it is the referral facility and head quarter for Nwoya Health sub district. It tenders on the whole primary health c be usefulnesss (PHC), for examples curative, pr in metertive, promotive and rehabilitation to Anaka sub-county and referral to the broad(a) district.The vision is to improve the health of the people of Nwoya district in graze to promote a healthy and productive macrocosm In early on profits and non-profit making livestockamental laws, inventories constitute an all important(p) element in the forethought of the placement. The look at for armory attention is influenced by the capacity of managing decisions since the existence of inventories get outing be de bourneined by the capacity centering st rategies which be to be employed ( Wild, 1995).Inventory heed refers to the organisational efforts and procedures aimed at protect the firm from blanket(a) or inadequate aims of inventories and to maintain sufficient inventory for smooth merchandise and sales (Pandey, 2003). Inventory vigilance in Anaka General Hospital stores focuses on how many units of each inventory items argon to be held in rakehell, how untold should be issued at a effrontery time and at what menses should inventory be issued and dispatched ( Johns, 2002).For impelling management of inventories, co-operation of the heterogeneous departments in the disposal is inevitable. The departments vary from organization to another exactly they usu exclusivelyy involve the buy department as the most important although each of which has a power to play in coordination amongst themselves to facilitate efficient and smooth carry out of ordering, receiving, progeny and usage of materials is required (Whi te, 1997).When inventories argon mighty managed, it leads to increase deed then modify organisational execution. Organizational exploit comprises the actual output or consequences of an organization as measured against its intended outputs or goals and objectives. correspond to Richard et al. (2009) organizational action encompasses three specific aras of a firm outcome financial transaction, product market carrying into action, and shargonholder return.In recent eld, many organizations have move to manage organizational performance victimisation the equilibrated scorecard methodology where performance is introduce and measured in multiple dimensions such as In recent years, many organizations have exertioned to manage organizational performance using the oddmentd scorecard methodology where performance is tracked and measured in multiple dimensions such as- customer service , kind responsibility and employee stewardship Although the Balanced Scorecard has b ecome very popular, at that place is no single version of the model that has been universally accepted.The diversity and whimsical requirements of dissentent enterprises suggest that no one-size-fits-all approach go out ever do the job. Performance measurement is the use of statistical evidence to determine further towards specific defined organizational objectives. thither are many types of measurements. In school, exams are graded to sanction the academic abilities in sports, time is clocked in split seconds to verify the athletic abilities. Similarly in organizations, there are various dickheads and measurements to determine how well it performs.Gamble, Strickland and Thompson (2007, p. 99) propose a comprehensive method for meter performance of organizations. How well each connection performs is dependent on the strategic contrive. Some of the measurements include basic financial ratios such as debt-to-equity ratio and if the take aims are an issue with credi 2rthine ss. 1. 2Statement of the Problem Inventory management is tinge with the management of inventories that are crucial for the efficient and effective running of an organization.However, even if Anaka General Hospital is practicing good inventory management techniques/practices, it has continuously failed to cumulate the expectations of its customers that is to say the patients in the hospitals and the health centers it serves (The District Board of Survey field 2011). These facts may be due to untimely language of aesculapian supplies, curt musical note of the medical supplies as well as employing incompetent workers who need skills and the friendship required.This has impacted on the general performance of the Hospital negatively therefore it is upon this footing that encourages the detective to carry out an investigation into this unusual person hence prompting the research. 1. 3Purpose of the Study The purpose of the study is to find out whether inventory management aff ects performance in Anaka General Hospital, Nwoya district 1. 4Objectives of the Study The specific objectives of the study volition be 1. To find out the techniques utilise in inventory management in Anaka General Hospital, Nwoya District 2.To establish the levels of performance in Anaka General Hospital, Nwoya District 3. To examine the birth surrounded by inventory management and performance in Anaka General Hospital, Nwoya District 1. 5Research Questions In order to arrive at the higher up mark objectives, the study exit focus on the spare-time activity research questions. 1. What are the techniques use in inventory management in Anaka General Hospital? 2. What are the levels of performance in Anaka General Hospital? 3. What is the relationship between inventory management and performance in Anaka General Hospital? 1. 6Scope of the Study . 6. 1Geographical scope The study exit be carried in Anaka General Hospital Nwoya district. This is chosen because the researcher sta ys inwardly Anaka Town Council and its cheaper in terms of captivate and accommodation. 1. 6. 2Subject Scope The study exit cover the important aspects in the covariants to a lower place the study by winning into account the techniques of inventory management, importance of inventory management and the indicators of performance in Anaka General Hospital 1. 6. 3Time Scope The study pass on be under impressn within a period of five months ranging from February 2012-June 2012.This time is chosen to provide a good cut for the attainment and door to the most recent selective information on inventory management and performance in Anaka General Hospital. 1. 7 Significance of the Study The study is evaluate to benefit and contribute through with(predicate) the following ways. 1. The study is part of the partial(p) requirements for the award of a Bachelor Degree in Business governance in Gulu University 2. The study entrust as well help the researcher to reach out the understa nding of the relationship between inventory management and its associated costs and allow for help in acquiring to a greater extent knowledge in the variable under study. . The study may besides act as a basis for future research in the field of inventory management and performance. 4. The study may help policy give risers in coming up with the procedures and strategies in inventory management and performance. 1. 8Structure of the Research Proposal Chapter one contains the invention, background of the study, statement of the problem, purpose of the study, objectives of the study, research questions, significance of the study and scope of the study.Chapter two contains the review of relevant lit that has been advanced by different writers in the field of inventory management and performance with the aim of finding the relationship between the two variables. Chapter three consists of descriptions of how the study ordain be conducted that is, introduction, research concept, cons ume flesh, sample size, ingest population, sources of entropy, data collection methods, data bear on analysis and interpretation and confinements to the study.CHAPTER TWO LITERATURE REVIEW 2. 0Introduction This chapter generates the existing literature in the field of inventory management and performance . here the thought of inventory management is defined according to different authors, techniques of inventory management, rationales of inventory management, organizational performance, indicators of performance and the relationship between inventory management and performance are registered among others. 2. 1The Concept of Inventory ManagementInventory management refers to the organizational efforts and procedures aimed at protecting the firm from excessive and inadequate levels of inventories and to maintain sufficient inventories for the smooth production (Pandey, 2003). Inventory management is concerned essentially with the use and get the hang of inventories. The need for inventory is influenced by capacity decisions since the existence of inventories will in move be determined by the capacity management strategies which are to be employed ( Wild, 2002).According to Gilbert et al (2000) inventory management has been defined in terms of an organization that aims at determining the range of qualities of materials and products, which should be melodyed, and the edict of the receipts and issues of materials. He further noted that inventory management mustiness ensure that the stemma has the right bar of goods in the right ass and at the right time under inventory management, efforts should be do or placed at the right time, with the right step, with the right superior at the right place.Broadly Lysons (2002) defines inventory as raw materials, work in progress and finished good. Inventory management aim at providing both(prenominal)(prenominal) internal and external customers with the required service levels in terms of quality and order fill rate, ascertaining present and further arrangements for all types of inventory to reverse over well-worning while avoiding bottlenecks in production and costs to a tokenish by variety reductions, economic sizes and analysis of costs incurred in flummoxing and carrying inventories.For effective management of inventories, it requires the co-operations of the various departments in the way the organization handles its inventories. The responsibility of managing work in progress and finished products may be with the material control department equally it could line whatsoever other section within the organization (Muhleman, 2000). According to Gupta (2001) inventory management is described as the sue that involves fixing the minimum and maximum inventory levels, determining the size of the inventory to be carried at a given time and the issue expenditure policy. 2. 2Techniques of Inventory Management in OrganizationAccording to Nixon (2008), inventory management techniques include 2. 2. 1First In First Out (FIFO) This method often referred to as (FIFO) is based on assumption that the premier inventory acquired is the origin inventory sold or issued out. In otherwise each sale is made out of the oldest inventories in stock. The closing curtain inventories there for consists of the most recent cost which may be adopted by any championship regardless of whether or not the physical flow of merchandise actually corresponds to this assumption of selling the oldest units in stock. 2. 2. 2Last In Fast Out (LIFO)This method is based on the prescript that materials entering store/production unit are the most late purchased. This means materials issued to production are prized/issued using the most recent purchased damage, the hand of goods purchased most recently are issued first. The closing stock is therefore valued at the oldest purchase price. 2. 2. 3Weighted Average According to the institute of management report (London) weighted average cost is calculated by dividing total of materials in the sock from which the materials to priced or issued would be drown by the total quantity of materials in stock.When the average costing method is used, the cost figures determined for the ending inventories are influenced by the various price pay during the year. The price paid early at the year may carry as more than weight in pricing the ending inventories as a price paid at the end of the year. If the price has been rising during the year, the average get in touch cost will be less than the current cost rife at the balance sheet date. 2. 2. The Re Order Level System (ROL)/ Fixed Order Point System The reorder level is the level at which a replenishment order should be placed in order that delivery is when the minimum level is reached. Orders for the same repair quantity will be required whenever it becomes necessary to do so. The frequency with which orders are made changes according to the level of demand, ROL organization ha s the following characteristic a pre determined level is set for each item. When the stock level travel to the ROL, a replenishment order is issued. Organizations operating this system maintain stock records with calculated re order levels.The re order system has three control levels, the ROL which was already defined, the maximum stock level which a level supra which stock should not normally rise and the minimum stock level which is a level below which sock should not be allowed to gleam. It is also cognize as safety sock or damp stock. Incase stock is to fall below this level, stoppage is likely to occur. 2. 2. 5The Periodic Review System/ Fixed Interval This system is sometimes called the invariant cycle system. The stock will be reviewed at regular fixed intervals to determine whether more should be ordered.An order will be elevated for the required quantity. The system as the following characteristics stock levels of all part are reviewed at fixed interval for example e very 2 weeks, where necessary, a replenishment order is issued, the quantity of the replenishment order is not a previously calculated economic order quantity but is based up on the likely demand until the next review, the present stock level and lead time. The replenishment order quantity seeks to gain stock up to a pre determined level. 2. 2. 6The Economic Order Quantity Analysis (EOQ)EOQ is a model that is used to decide optimum order size of the sock which will minimize the costs of ordering and dimension cost. It is a deterministic type of model which assumes that all parameters (factors) are known with certainty. It assumes ordering and holding costs are known with certainty. on that point is a spontaneous delivery (no time lag between ordering and receiving) of items. The rate of demand is known and the demand period is normally assumed to be one year. There is unknown constant price per unit and all other factors are held constant. 2. 2. 7The ABC AnalysisThis relates to t he classification of materials in the store. Materials are sort according to their importance. Group A are crucial for organizational performance, if there were a shortage of such material, production shortage would occur, they mean 70% of investment in inventory. Group B may not be crucial and they may not disrupt production activities but stillness they are also important. They normally represent 20% of investment in the inventory. Group C are materials which may be necessary for a firms production activities but are not so important.They normally represent 10% of investment in inventory. 2. 2. 8Just In Time Technique Here items of very high value that are frequently used, it make ups sense to attempt to keep low or possibly no inventory of these items and sooner get frequent deliveries possibly on a daily basis. The objective is to avoid tying lots of money in stock (working capital). Organization will need to find extremely authoritative suppliers of defect warrant product who are sound in time oriented. Just in time is based on pull concept, where by suppliers wait for a signal from their customers onwards they deliver or replenish.According to the study carried out by AVSI in 2005 inventory management techniques being used at the significance especially in areas of fund, and provision to medical supplies in Anaka General Hospital is a mixture of techniques . Stock brought today may be immix up with already existing stock and when giving out stock to the clients, it does not matter which stock comes first either the old stock or the new stock. 2. 3Principles of Good Inventory Management In the business world, not everyone follows good principles that aid in their success.However, the principles of inventory management cannot be ignored if the organization expects to maintain a quality business with a good reputation for always being able to assist a customer. Employing good principles is the trounce way to profit in any industriousness becaus e it keeps the organization a float in a world. Principles maintain organizational quality and responsibility to a disgorge and to aspects that are most important in the inventory management (Graham, 2000). 2. 3. 1Cleanliness and Organization This principle of inventory management is simple and easy to follow, if the organization simply makes it a point to do so.For example, one of the top priorities in inventory management is to maintain a clear organized store in which all items are properly stored and labeled. This is important for several reasons. Cleanliness is important for an organization, staff and products the store (Lee, 2001). The organized storage and labeling allows easy location and order pull of stock or any item in the warehouse without any difficulty in searching. 2. 3. 2The Principles of Stock Rotation If the organization employees good principles of inventory management it will be certain to rotate the stock, selling through order stock before delivering into ne w shipments.This will ensure that the organization always has fresh products and doesnt lose money by having to write off old items (Gary, 2002). 2. 3. 3Tracking charge careful track of all the items in the warehouse is one of the best principles of inventory management. Obviously, one can benefit greatly by employing just a few basic principles of inventory management in the organization work place. The more the organization work towards running a tightlipped ship, the better off the organization will be as managers and the more profitable your department in business will be. 2. Organizational Performance According to Stonner (2002) organizational performance is the measure of how effective and efficient an organization is and how well it reach outs the separate objectives. It involves the assessment of carry throughments of organizational objectives and planning for the future change. That is it involves the denomination of major issues and solutions relating to one or more areas such as organizational schema, human imagery strategy, human resource policies, organizational structure design, staff skills mix and communication channel.Problems of this nature can significantly limit organizational performance and development (Deloitte, 2006). Armstrong (2000) defined organizational performance as a state of degree of how an organization is governed in relation to the organizational goals its capacity to triple-crownly implement set objectives in order for it to achieve the organizational goals and objectives. Organizational performance is therefore a process it can be confirming or negative. Negative organizational performance is a degree in which an organization deviates from its set goals and objectives during the effectuation of the short term and prospicient term goals.For organizational performance to be positively achieved, management should set short term and specific goals that can be feasible as well as able to guide long term goals. An orga nizational budget estimate should be tailored to meet its goals and objectives by identifying and removing obstacles during the carrying into action of the estimates. Pandey (2002) defined performance as the financial strength and weakness of a firm by properly establishing a link between the balance sheet and income statement.He further argued that performance entails effectiveness which refers to the firms might to serve and cite what is required by the market at a particular time in effect, which refers to the firms qualification to serve and produce what is required by the market at a particular time effectively, which refers to the firms ability to serve and produce whats required by the market at a particular time effectively which means meeting the objectives of the lower possible cost with the highest benefit.Kotler (2002) stated that performance measures must focus attention on what makes identities and communicates the driver of success, support organizational learnin g and provide basis for assessment and rewards. He further lamented that it can be looked at in terms of warlike feasibility resource utilization and annotations. When seeking to improve the performance of an organization it is very ministrant to regularly conduct assessments of current performance of the organization.Assessment might be planned, authoritative and explicit (these often are the best kinds of assessments) or un planned SWOT analysis diagnosis models without recognizing or referring to them as such. Along with comparison of gives to various best practices or industry standards (Pearce, 2000). The organization is used to an ongoing performance management for employees, for example setting goals, monitoring the employees achievement of those goals, share feedback with the employee, evaluating the employee performance, rewarding performance or firing the employees.Performance management applies to organizations too and includes pass off activities to establish organ izational goals, monitor progress towards the goals and make adjustment to achieve those goals more effectively and efficiently. Those recurring activities are much of what leaders and managers inherently do in their organizations some do them far better than others. 2. 4. 1Indicators of Performance The key performance indicator is a measure of performance, such measures are comm scarce used to help an organization define and evaluate how successful it is typically in terms of making progress towards its long term organizational goals.The performance indicator may be monitored using the business intelligence techniques to assess the present state of the business and to assist in prescribing a course of action (Frank, 1998). The act of monitoring the performance indicators in real term is known as business activity monitoring. The key performance indicators are frequently used to value difficulties in measuring activities such as the benefits of leadership development, engagement se rvice and satisfaction they are typically tied to an organizations strategy using concepts or techniques such as balanced stored card (Quinn, 2000).The key performance indicators differ depending on the nature of the organization and the organizations strategy. They help to evaluate the process of an organization towards its vision and long term goals especially towards difficulties in quantifying knowledge based goals. The performance indicators differ from business drivers and aims or goals. A school might consider the failure rate of its bookmans as a key performance indicator which might help the school under its position in the education association where as a business might consider the percentage of income from customers.Therefore, the indicators of performance include 2. 4. 2Social Responsibility These are determine that guide people in organizations and corporate. Culture that embodies those values and values held by people outside the organization (Robert, 2000). He furt her says that social responsibility makes people buy a product from a company because of the companys good reputation. Stonner, (2000), states that corporate culture can be a strong force for organizational performance. 2. 4. 3strategic Cost ManagementAccording to Pearce (2000) modern businesses strategically manage their costs through identifying costs and drivers, developing appropriate process and strategies aimed at reducing or eliminating the costs so as to heighten business performance. 2. 4. 4Information Sharing Quinn (2000) said that improved decision making and performance efficiently is due to realistic informed and detailed info sharing. He further asserts that outcomes of the relationship and interactive feedback are used o make improvements. 2. 4. 5Flexibility Flexibility of an organization is yet another determinant of performance. This means ability to manage change in a business. The increased performance of any organization is reflected in its ability to make chan ges without and delay. This flexibility can take a form of development needs continuous update of information or improved technology. Therefore, lack of flexibility in an organizations activities will reflect reduced profits. 2. Relationship between Inventory Management and Performance It was observed that inventory management in organizations has a positive significant relationship with performances whereby when all the materials and inventories are properly managed they lead to increased levels of efficiency and effectiveness that will help indecision making from the organization. According to a study conducted about inventory management by Karamagi (2004), on bank of Uganda, with the introduction of computerized system the overall management of stock has improved with regards to monitoring, reconciliation and reordering and requisition thus performance.Accordingly, inventory management has helped in tracking record process so that stocks are available all the time so that there a re no stock outs and for indispensableness purposes. Receipts and issues are posted outright and automatically on to the system other than stock cards. Akers and Porter (2001) included that the use of inventory management at any level of an organization can have implications for competitive advantage. At the highest echelons of an organization, the inventory management is crucial to successful strategic planning.Duff (2001) and Mitskavick (2000) also reported that at the operational level, availability of inventory can result in increased organizational efficiencies such as increased sales, diminish inventory, increased customer service, shortened production lead times and take down labour costs. CHAPTER THREE METHODOLOGY 3. 0Introduction This chapter discusses the research design, area of the study, organise population and methods to be used by researcher to gather information, study population, sampling size and procedures, data collection tools, data analysis and limitations of the study. 3. 1Research DesignA research design is a plan to carry out a research project/ it is a pattern the research is going to follow/it is the overall plan or strategy for conducting the research. Oso and Onen, 2005 pg 69). For this research purpose, qualitative, quantitative and descriptive research designs will be used. The rationale for selection of the designs above is that case study uses little samples for in-depth analysis other than covering the entire population the design is also multi model, concrete and contextual in nature. 3. 2Area of study This research is going to be carried out in Anaka General Hospital, Nwoya district. . 3Target population The study will target the following category of people medical superintendant, doctors, store custodians and other employees. They are chosen because of their day today mandate and interface with inventory management issues and Performance in Anaka General Hospital 3. 4Population and Sample Size Aggarwal (198814) stat ed that the term population in research refers to a universe of hobby to the study. A population is the group to which a researcher would like the results of a study to be generalisable and make reference to a specific land site or context.The study will include medical superintendant, doctors, store keepers, District Health Officer, nurses, other employees and selected patients and other employees. A number of 54 respondents will be expected to be given the questionnaires and or consultationed. The medical superintendant, doctors, storekeepers, employees and patients will be chosen because they are the people expected to be having replete experience as partners to the field of inventory management in Anaka General Hospital Table 1 3 Showing the sample sizes S/NO RESSPONDENTS NUMBER 1 Medical superintendent 1 2 Doctors 2 3 District Health officer 1 breed keeper 2 5 Nurses 12 6 Other employees(Dentist, Pharmacy, Administrator, reputation Assistant, Laboratory Assistant, Darkro om Attendant) 24 7 Patient 12 TOTAL 54 Sources Source Researchers proposed sample size 3. 4. 1Procedures of Data Collection This will be based on purposive sampling According to Shaughnessy and Zechmeister (1997139) purposive sampling is where the investigator selects individuals to be included in the sample on the basis of their special characteristics. This method shall be used by the researcher to obtain respondents who have some knowledge on the subject matter.Purposive sampling design will be used to choose the area in which the study will be conducted because of the proximity to the researcher in views of time and fund constraints. The study will purposely be based at Anaka medical stores serving in this case as service provider and the community as patients/consumers. 3. 4. 2Sample Technique The researcher will employ systematic hit-or-miss sampling to carry out the study. Systematic random sampling will be used to select the category of respondents to be Included in the sa mple. The purpose of using this technique is to avoid being bias in the Selection of respondents.Systematic random samplings requires establishing the number from the population List in the tent then by and by identify every nth member in the population from the Randomized list of the population. This technique will group the population sampled into Separate identical subjects with equal chances that share similar or same characteristics to Ensure equitable representation of the population in the sample. This technique is like because it selects without bias. It also saves time and Money. 3. 5 Data Sources The data source shall conform to of the following 3. 5. Primary Data The researcher shall collect fresh data and for the first time which will be original in nature from Anaka General Hospital stores and will directly be obtained from the filled records. 3. 5. 2Secondary Data The researcher will review literature which contains the data that has been store by some other peop le but relevant to the researchers topic of the study for instance from magazines, journals, text books and internet sources. 3. 6Data Collection methods Data from the field will be obtained by use of combination of the following data collection methods.The researcher will use questionnaires, interview and roll analysis as the main tool for collecting data. The selection of this tool will be guided by the nature of data to be collected. 3. 6. 1Questionnaires Questionnaires will be used since the research is mainly with variables that cannot be directly observed such as views, opinions, perceptions and feelings of the respondents. Such information is best collected through questionnaires. The sample size comprise of (54) Respondents and given the time constraints, questionnaires is the paragon tool for collecting data.The researcher intends to use categorized instrument that is both open and closed questions and optional responses. This will enable the researcher to balance between quality and quantity of data. It will also simplify data analysis and coming out with clear report on the study. 3. 6. 2Observation guide This will be employed by the researcher to collect information from Anaka General Hospital by observing how the drugs are issued to the respective users and how they are stocked in the stores. 3. 6. 3Interview guide Data shall be collected using in-depth interviews and focus group discussions.Colin (199347) stated that a guide can be directed on a given set of predetermined questions. The researcher used an in-depth interview guide to gather information about the study. The in-depth interview approach is relevant because of the sensitivity of the issues being studied which required in-depth exploration. This will be conducted by the researcher to probe for more information in a face to face discussion with the Anaka General Hospital management. This will target the doctors and storekeepers at the Hospital 3. 7 Data Processing and Analysis 3. 7. 1 Data Analysis and ManagementData analysis is defined as a process of inspecting data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data shall be obtained from detailed field notes and written data collected through questionnaires. The analysis shall involve the organization of data into themes by searching for patterns emerge from data collected. The information from the questionnaires shall be written and presented by researcher as provided by the respondents. This data shall be used by the researcher to provide a descriptive analysis of the respondents understanding of store management.The findings will later be analyzed using Micro soft Excel to present the data in term of percentages using pie-charts and bar graph. This will be useful in displaying pattern in the collected data, and these patterns were used to make generalization on the basis of recommendation made. 3. 8Ethical Considerations The research topic was fir st approved by faculty of Business and Development Studies of Gulu University research committee . The researcher will then obtain a letter of introduction from Gulu University which will be presented to the District Health Officer Nwoya District and Medical superintendent of Anaka General Hospital.All respondents will be informed about the purpose of the study, their freedom to participant, and also assured of confidentiality, the researcher also promise to provide copies of his finding to the University and the MS, DHO of Anaka General Hospital 3. 9Limitation of the Study The following are the evaluate limitations Some respondents may intend to withhold information for fear of exposing their incompetence. This will be overcomed by, assuring them of confidentiality of the information that they also stand to benefit if implementation of the recommendation of the study are taken.There may be inadequate inventory control record for review by the researcher, more so because the Hospi tal does not even used electronic databases. To bridge the gap, interview and discussion will be used to identify and explain the missing or inaccurate data respectively. Financial constraint may also reach the researcher since he is self-sponsored and to reduce the cost, the researcher will undertake some activities such as typing, binding the research proposal, the questionnaires, the interview schedules.Time is a limitation in that the frame for submitting the search proposal is short considering the size of departments and the outer space of Anaka General Hospital its 56KM from Gulu town and some respondents may delay complementary of questionnaires due to their personal commitment and these may slow down the digest of data. To prevent these, the researcher will engage a research assistant to speed up data collection. REFERENCE Aggarwal, Y. P. (1988). 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United States of the States Stonner et al (2003), Principle and practice of management, 8th edition White 1997, optimisation Engine for Inventory Control, white paper from Golden embryo web page, Bogazici University 1997 www. freepatentsonline. com APPENDICES APENDIX 1 WORK PLAN 2012 PHASE/ACTIVITY Jan Feb cocker Apr May Jun Jul Responsible person Developing synthesis Researcher and supervisory program Developing a proposal Researcher and supervisor Developing and piloting of instrument Researcher and supervisor Data collection Researcher Data organization, analysis and interpretation Researcher and supervisor Typing, editing/report submission Researcher APENDIX 2 BUDGET ESTIMATES S/NO ITEMS DESCRIPTION scathe ESTIMATED AMOUNT Stationeries Rim of papers 2 20,000 40,000 Pens 10 500 5,000 flaskful disk 1 70,000 70,000 Typing and Printing 200,000 Binding 60,000 PERSONNEL Research Assistant 1 50,000 Communication 60,000 Meals 80,000 TOTAL 565,000 APPENDIX 3 QUESTIONAIRE INSTRUMENTS full Respondent I am Ocen Alfred Ayella a third year student of Business Administration of Gulu University.Currently I am under fetching a research study about Inventory management and organizational performance, A case of Anaka General Hospital. The purpose of the study is to enable me to obtain a Bachelor of Business Administration Degree from Gulu University. The information provided shall not only be for academic purposes but also to improve on the service delivery in success of inventory management and organizational performance in Anaka General Hospital Nwoya district. The information that you will give will be strictly confidential Instruction * Tick where options are given * Fill in the space provided * Be as objective as possible SECTION A Demographic Characteristic 1. Name (optional) 2. What is your sexual activity?Male Female 3. In which age bracket do you fall? beneath 18 years 20-29 years 30-39 years above 40 years 4. Marital status? Single Married Divorced SeparatedWidowed 5. Highest level of education attained? Non O and A level Certificate sheepskin Degree Postgraduate Master PHD 6. Current job position held at Anaka General Hospital? Medical superintendentDoctorDistrict Health officer Store keeper A NurseLaboratory AssistantPatientOther specify 7. How long have you been in this position? Below 2 years 3 years and above 5 years and above SECTION BTechniques of inventory management in Anaka General Hospital? 8. What kind of inventory management do you have in th e Hospital? Fixing minimum levels Maximum inventory levels Determine size of inventory All the above 9. Which techniques do you use in managing inventory? Stock rotation, just in time Last in first out (LIFO) First in First out (FIFO) Economic order quantity Weighted averages The periodic review system All the above 10. Is just in time techniques more important as pertain to inventory management? Yes No If yes, state your opinion how is it important? 11.The principle of good inventory management include (Tick all that apply) Cleanliness of the organization The principle of stock rotation Tracking All the above 12. What measures are used to improved inventory management in Anaka General Hospital? 13. The strategy that helps the Hospital to achieve the high level of inventory management? You are required to show the extent to which your agree or disagree (Please pock (v) most appropriate of strongly ensure (SA), Agree (A), Not sure (NS), Disagree (D) and powerfully Disagree (S. D) Statement S. A A. NS D SD 1. Inventory managers are responsible for receiving inventory when they arrive 2. The Hospital always verifies stock received against delivery orders 3. Does the Hospital order for inventory monthly 4. Does the Hospital order for inventory quarterly 5. Does the Hospital carried out stock taking on monthly basis 6. Does the Hospital carried out stock taking on quarterly basis 8. All relevant employees participate in Inventory management SECTION C Indicator of the organizational performance 14. Organizational performance is measured by efficiency and effectiveness of resources to achieve stated objectives Yes No 15.Organizational performance improvement includes assessment which is inform of mean Systematic Explicit All the above 16. What are the indicators of organizational performance? Social responsibility Information sharing Flexibility Flexibility Strategic cost management Strategic cost management All th e above 17. Organization performance is measured by both financial and non financial performance a) State the financial organizational performance i. ii. iii. iv. b) Non financial organizational performance i. ii. iii. SECTION D The relationship between inventory management and organizational performance You are required to show the extent to which your agree or disagree (Please tick (v) most appropriate of strongly Agree (SA), Agree (A), Not Sure (NS), Disagree (D) and Strongly Disagree (S. D) contention SA A NS SD D There is a direct relationship between inventory management and organizational performance Carrying out inventory management reduces costs related with over and under stocking Without proper inventory management, The organization cant meet her customers needs in time There is high service delivery attained as a result of inventory management The organization has large assets and capital as a result of proper inventory management The orga nizations services are reliable and in good condition There are ranges of services delivery option for Patient when they come The organization is able to adjust the nub of products in the store and are able to reschedule priorities demand Your organization is able to obtain out of stock products in time. SECTION EEvaluation of the factors that affects the performance of Anaka General Hospital You are requested to state the extent to which you agree or disagree (Please tick the most appropriate of Strongly Agree (SA), Agree (A), Not Sure (NS), Disagree (D) and Strongly Disagree (S. D) Statement S. A A. NS D SD 1. There is inspection of goods in your organization in order to determine defective goods. 2. There is run down of drugs when kept for a long time 3. There is inadequate skills and knowledge of inventory planning and management in Anaka General Hospital 4. There is high rate of theft of inventories In your organization 5. There are qualified personnel who are responsible for managing inventories. Thanks you for your response and time