Working Capital and Inventory Management

Working capital and inventory management are critical for maintaining the short-term financial health and operational continuity of healthcare organisations. This topic covers the management of current assets (cash, receivables, inventory) and current liabilities to ensure liquidity and efficient service delivery. It includes techniques for inventory control such as Economic Order Quantity (EOQ), Just-in-Time (JIT), ABC analysis, and perpetual inventory systems, applied specifically to medical supplies and pharmaceuticals. For Zambian tertiary students in healthcare management and finance, mastering these concepts helps prevent stockouts, reduce holding costs, and optimise cash flow in hospitals and clinics. Understanding the relationship between capital structure and working capital management supports strategic financial planning and resilience against supply chain disruptions, a key concern in Zambia's health system. This knowledge is vital for supply chain managers, hospital administrators, and finance officers.