Investigating Challenges of Inventory Management in the Health-Care Sector

Abstract

Purpose

The purpose of this study is to investigate the challenges of inventory management within the public healthcare sector in Egypt. Therefore, it aims to identify and prioritize these challenges to establish recommendations for improving the effectiveness and efficiency of the “medical supply management”.

Design/Methodology/Approach

The study employed a three-phase research design. First, a comprehensive literature review identified eight preliminary inventory challenges. Second, these challenges were validated through exploration interviews and a 5-point Likert scale survey with practitioners at the Public Children's Hospital, which resulted in the addition of two context-specific challenges. Finally, the Analytical Hierarchy Process (AHP) was used based on a pairwise comparison survey to rank and prioritize the identified challenges based on experts’ judgments.

Findings

The research identified ten validated challenges affecting public hospital inventory systems. The findings of the AHP indicated that the “Stockout” remains the highest challenges with (25.2%), followed by “Limited Warehouse Space” which ranked (19.6%), and “Lack of Technology and Automation” with (17.4%). Other notable challenges included “Insufficient Staff Training” and “Overstocking.

Research Implications/Limitations

This study contributes to the literature by addressing a research gap regarding hospital inventory management solutions specifically tailored for developing countries. However, the findings are limited by their geographical focus on public hospitals within the Egyptian Governorate. Challenges may vary in other regions or different healthcare settings, such as private or specialized clinics, due to local administrative structures and resource availability.

Practical Implications

The study proposes actionable recommendations to improve inventory management performance, such as implementing Electronic Logistics Management Information Systems (eLMIS) and Warehouse Management Systems (WMS) to automate tracking and optimize storage. Enhancing these procedures can lower the operational costs of managing inventory, reduce medication waste, and consequently improve the quality of patient healthcare.

Originality

This research offers a novel application of the Analytic Hierarchy Process (AHP) to prioritize specific inventory management hurdles in the Egyptian public healthcare context. By mixing scholar literature with focus medical practitioner perceptions from a specialized children's hospital, the study provides a constructed and empirical framework for decision-making in resource-forced settings.

Keywords: Hospital Inventory Management, Public Healthcare, Analytic Hierarchy Process (AHP), and Medical Supply Chain.

Received 11 April 2026

Accepted 12 June 2026

Published 12 July 2026