EFFECTS OF INVENTORY MANAGEMENT ON CUSTOMER SATISFACTION: A CASE OF PUBLIC HEALTH SECTOR ENTITIES IN MBEYA CITY, TANZANIA – International Journal of Accounting Finance and Social Science Research (IJAFSSR)

Title: EFFECTS OF INVENTORY MANAGEMENT ON CUSTOMER SATISFACTION: A CASE OF PUBLIC HEALTH SECTOR ENTITIES IN MBEYA CITY, TANZANIA

Author:
Kaula Stephen

Abstract:
The study investigates on the effects of inventory management on customer satisfaction. This investigation came following the cases reported customers o poor services provided from public health entities. To uncover this knowledge gap the study employed explanatory research design while the study being conducted in Mbeya City. The unit of analysis included Mbeya referral, Mbeya parental referral, Mbeya regional, Mbeya-City (Igawilo) hospitals as well as Mwenjelwa health center. Given the sample frame of patients/customers, management and clerical staff, 100 respondents was obtained from 4,100 total populations of all 5 public health entities. Using cluster sampling technique, the unit of analysis was segmented into four clusters from which at most 20 respondents was selected and data collected by using questionnaire. The collected data were proposed and subjected into analysis using descriptive statistics and regression inferential tool. The result of analysis revealed that strategic supplier partnership, lead time and use of information technology system positively and significantly affect customer satisfaction. Furthermore lean inventory management found to have positive but insignificant effect on customer satisfaction. The positive and significant association results provide a recommendation to the procurement and supply professionals in health centers effectively manage inventory by ensuring strong strategic supplier partnership, lead time management and lean inventory management. Also procurement and supply personnel in health sector entities should be adopted and used to information technology and digital systems in enhancing effective inventory management in satisfying customers who are now the patients.

Keywords: Inventory management, customer satisfaction, strategic supplier partnership, lean inventory management, lead time, information technology.

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