STOCK-OUT AND REVENUE GENERATION IN TERTIARY HEALTH INSTITUTIONS IN ENUGU STATE
Abstract
The study sought to ascertain the effect of stock-out on revenue generation in Tertiary Health Institutions in Enugu State. Ex-post facto and survey research designs were adopted for the study. Data mining approach was used to collect five- year data on hospital revenue and budgets from hospital records for the period 2010-2014, while structured questionnaire was used to collect supplementary data for the study. Four health institutions were studied in Enugu State of Nigeria. The study made use of 2 specific objectives, 2 research questions and 2 hypotheses. The possed hypotheses were tested using Panel model. The pre-estimation test for fixed or random effect was done using Hausman test and Sargan-Hansen statistic test of over-indentifying restrictions. Findings revealed a negative relationship between stock-out and revenue generation while there is a positive relationship between hospitals budget for drugs and revenue generation. One of the implications of the findings is that any measure that reduces stock-out would increase hospital revenue. The study concluded that stock-out distorts smooth running of hospitals with attendant economic and psychological consequencies. The study recmended among other things, that hospital management should adopt modern methods of inventory control fortified with radio-frequency identification (RFID) and point-of-sales data analytics to prevent stock-out situations in hospitals.References
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Adeniji, A.A. (2012). An insight into management accounting . 6th Edition. Lagos: El-Toda Ventures LTD
Adeyemi S.I & Salami A.O (2010). Inventory management: A tool 0f optimizing resources in a manufacturing industry a case study of coca-cola bottling company; Ilorin plant. Journal of social science 23(2) 235-142
Alverson, C. (2003). Beyond purchasing_managing hospital inventory
Managehealthcareexecutive.modernmedcine.com/managed_Health care.
Anderson, E.T. & Fitzsimons, G.J. (2006). Measuring and Mitigating the Cost of Stock-outs. Management Science 52(11).1751-1763
Bhimani, A., Horngaren, C.T., Datar, S.M. & Foster,G. (2008).Management and cost accounting. 4th Edition.dinburgh Gate, England: Pearsons Educational Limited.
Boyd, K. (2015). Stock-out costs in cost accounting.
www.dummies.com/howto/content/stock-out-costs-in-accounting.html.
Business Dictionary. www.Businessdictionary.com/definition/Stock-out-costs/html.
Business Concepts (2013). Costs of a stock-out.
Business Concept101.blogs.com/2013./01 cost of stock-out.
Devnani, N., Gupta, A.K. & Nigah, R. (2010). ABC and VED Analysis of the pharmacy store of a tertiary care teaching, research and referral health care institute of India. J. Young Pharmacy 2(2). 201-205
Dominick, C. (2009). Calculating the cost of a stock-out. Next Level Purchasing. www.nextlevelpurchasing.com/articles/stock-out-cost.Html.
Drury, C. (2012). Management and cost accounting. 8th Edition. United Kingdom: Cengage Learning.EMEA.
Horngren, C.T., Datar, S.M., Forster, G.,Jajan, m. &Ittner, C. (2008). Cost accounting ; A managerial emphasis. 13th Edition. New Delhi: Prentice-Hall of India Private Limited.
Imaga, E.U.L. (2003). Theory and practice of production and operation management. 3rd Edition. Enugu: Rhyce Kerex Printers.
Krajewski, L.& Ritzman, L. (2002). Operational management. New Jersey: Pearson Education Inc.
Kunders, G.D., Gopinath, S. & Katakam, A. (2000). Hospitals: planning, design and management. New Delhi. Tata McGraw-Hill Publishing LTD 273-281
Lucey, T. (2009). Costing. 7th Edition.Croatia: Zrinski d.d.
Lucey, T.(2003). Management accounting. 5th edition. London: Book powers publishers.
Lwiki, T., Ojera,P.B., Mugenda, N.G. & Wachira, V.K. (2013). The impact of inventory management practice on financial performance of sugar manufacturing Firms in Kenya. International Journal of Business, Humanities and Technology 3(5) 75-85 May.
Muai , D.M. (2013). Factors affecting consistency in supply of pharmaceutical products in government hospitals in Kenya: A case study of maragua district hospital.developing countries studies. www.iiste.org. 3(13).
Obansa,S.A.J. & Orimisan,A. (2013). Health Care financing in Nigeria: Prospects and challenges. Medterranean Journal of Social Science 4(1) January.
Ogbo, A.I., Onekanma, I.V. & Ukpere, W.I. (2014). The impact of effective inventory control on organizational performance: A study of 7up Bottling Company Nile Mile, Enugu, Nigeria. Mediterrenean Journal of Social Science 5(10) 109-118.June
Owler, L.w.J. & Brown,J.L (1984). Wheldon’s cost accounting. London:Pitman Publishing.
Okoye, P.V.C. (1999).Cost and management accounting. Basic concepts, application and issues.The ABC approach. 1st Edition. Enugu: Snaap Press LTD.
Onubogu, O.A. (1999). Inventory and stock management in a manufacturing company. Journal of Management Sciences 3(1).UNIZIK Faculty of Management Sciences.
Pearson, G.(2011). Out of stock cost retailers billions. Biz community.com Daily Industry New.South Africa. Retrived 6/7/2015.
Seal, W., Garrison, R.H. & Noreen, E.W. (2009). Management accounting. 3rd Edition. Berkshire UK: Mc Graw-Hill Higher Education.
Shiau, J., Li,X. & Zheng, M. (2012). Drug inventory control for outpatient services. CIE42 Proceedings. Cape Town:South Africa. July, 16-18
Stoner, J.A.F, Freeman,R.E. & Gilber Jr,D.R.(2006). Management. 6th Edition. New Delhi: Prentice-Hall of India.
Thompson Career College (2014). Maintaining inventory in the pharmacy
Thompsoncc.ca/2014/10/14/maintaining inventory control…
Toomey, J.W. (2000). Inventory management; principles concepts and techniques. Norwell:Kluwer Academic Publishers
Tucker, C. (2015).Hospital inventory management.
LogiPharmaUs.wbresearch.com/hospital Inventory Management-ml
Ude, S. N. (2013). Inventory management in government health institutions: Problems and prospects. Paper presented to National Association of Nigerian Nurses and Midwife, Poly Sub District Hospital unit, Nurses’ day, May 11
VanDerbeck, E.J. (2010). Principles of cost accounting.15th Edition. USA: South-Western Cengage Learning
Published
2017-02-16
How to Cite
UGWU, James Ike; UDEH, Sergius Nwannebuike.
STOCK-OUT AND REVENUE GENERATION IN TERTIARY HEALTH INSTITUTIONS IN ENUGU STATE.
GOUNI Journal of Management and Social Sciences, [S.l.], v. 4, n. 2, p. 163-176, feb. 2017.
ISSN 2550-7265. Available at: <http://journal.gouni.edu.ng/index.php/fmss/article/view/21>. Date accessed: 10 may 2018.
Issue
Section
Articles
Keywords
Stock-out; Revenue Generation; Tertiary Health Institutions; Cost; Budgetory Provisions; Inventory Management
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