This study aims at studying the effectiveness of supply and storage management in light of the determinants of demand for health services in Saudi hospitals in an analytical framework. The survey studies the impact of logistical management of medical materials and its vital role in securing the necessary medical resources and supplies for the health institution. The study adopts the descriptive and analytical approach in order to achieve its goals and test its hypotheses, as the study was applied in the hospitals of Al-Kharj Governorate. The study finds that there was a relationship between the methods of supply and storage applied in Saudi hospitals and the determinants of demand for the health services provided. The study recommends working on developing methods of requesting suppliers, developing methods of storing medicines and medical supplies, and distributing them inside the hospital in accordance with economic standards and making use of computer technologies.