Asian Journal of Economics, Business and Accounting

The study assessed the role of effective inventory management on the operational performance in the health sector of Sunyani in the Bono Region of Ghana. The study used a survey design and a quantitative methodology. The study employed simple random sampling to select 124 managers and officers of procurement and operations for health facilities in the Bono Region of Ghana. Structured questionnaire was used as the main data collection tool to gather information from respondents. Both descriptive techniques and inferential analysis was used to analysed the data. The study revealed that the inventory management technique mostly practice by the Sunyani in the Bono Region of Ghana health sector is Strategic Supplier Partnership (SSP) (mean = 4.22; SD = 1.07). With all factors remaining constant, the study shows that a unit increased in VMI practice will bring about operational performance unit increase of 0.264. The study revealed that the biggest challenge facing the health sector was delays in drugs delivery resulting in inadequate inventories (mean = 4.39; SD = 1.31). This challenge was followed by bureaucratic process in procurement (mean = 4.33; SD = 1.34), inadequate funds for procurement (mean = 4.31: SD = 1.76), understocking/overstocking (mean = 4.24; SD = 1.60), and conflict of interest (mean = 4.23; SD = 1.65). The study recommends that the government together with the ministry of health should support the health sector with enough funds to prevent understocking of health products.