INVENTORY MANAGEMENT

CONTROL OF RICE RETAILERS IN

LEMERY, BATANGAS

Judith D. De Roxas
Kimberly P. Medina
Rowella A. Rodil

BSAM 3201
Introduction
In business world, inventory is one of the
most expensive assets of many companies. Good
inventory management being crucial that have
been recognize by operation managers around the
globe. A company can reduce costs by reducing
inventory. However, customers become
dissatisfied when an item being stock out. To meet
a balance between inventory investment and
customer service is one of the objectives for
inventory management.
Statement of the Problem
The study aimed to assess the inventory
control procedures on the business operation of
rice retailers in Lemery, Batangas. Specifically, it
sought to answer the following questions:
1. What is the profile of the selected
manufacturing companies in terms of:
1.1 form of business organization;
1.2 years of operation;
1.3 capitalization;
1.4 city?
2. How do the respondents assess the inventory
control procedures of rice retailers on the
following:
2.1 Safety stock;
2.2 Reorder point;
2.3 Economic order quantity;
2.4 First-in-First-out;
2.5 ABC analysis?
3. Is there significant difference in the assessment
of inventory control procedures when the
respondents are grouped according to profile
variables?

4. Based on the findings, what intervention plan

may be proposed to enhance inventory control
procedures on business operations in Lemery,
Batangas?
Theoretical Framework
Theoretical framework served as the basis of
the researchers in formulating the structure of the
study. It specifies which key variables influence a
phenomenon of interest.
 According to Cabrera (2011), inventory control is
the regulation of inventory within predetermined
limits. Effective inventory management should provide
adequate stocks to meet the requirements of the
business, while at the same time keeping the required
investment to a minimum.
One of the inventory control system is safety stock.
Retailers can skip from shortage against unexpected
increase in demand and delay of delivery from
suppliers. They can continue their operation any time
because they prefer to have stocks
 Another one is reorder point. Retailers became
aware on the availability of their product so they are
capable to estimate when is the perfect time to reorder.
They can control the supply of their product even if
there are changes in the demand.
In addition, economic order quantity is also one of
the system to control inventory. It provides about how
much to order and to make partial payment to the
supplier. Retailer receives a permissible delay on the
entire purchase amount without collateral deposits. It
is well known that the higher selling price of item
decreases the demand rate of that item where the
lesser price has the reverse effect.
 The other one is ABC analysis. In the current
business environment, a single criterion is not
enough to guide inventory management and
multiple criteria are must to be considered.
Inventory classification models help to allocate
time and money in inventory management from
one hand.
Significance of the Study
The researchers believed that the success of
the study will depend on the value it will contribute
to the readers. This section provides brief
description on the significance of the study to the
following:
• To the Owners of Rice Retailing
• To Batangas State University
• To the researchers
• To the future researchers