(Name of School)

Effective Inventory Management and Control in Selected Agencies in

Region II
 Your Name

Your Institution

July, 2022

Chapter I

THE PROBLEM AND ITS BACKGROUND

Small and medium-sized businesses, often known as SMEs, are extremely

important to the economic growth of almost every nation, but this is especially true in

developing nations like the Philippines. It is now widely acknowledged that efficient

inventory management is one of the most important factors in a company's overall

performance, particularly for small and medium-sized retail firms (Agbola & Amoah,

2019). The process of monitoring the movement of things into and out of your stock is

one that is essential to the operation of a system that works well. Having the right amount

of merchandise in the warehouse requires a delicate balancing act.

An efficient administration of inventory helps keep stock costs under control,

which is critical to the operation of a profitable business. A company cannot function

without an Inventory Management and Control System. This is an absolutely necessary

component. It is generally agreed upon that inventory is one of the most important
resources that an enterprise possesses. It is imperative that the executives of Inventory

be proactive, accurate, and efficient. It is important for any company to have adequate

inventory in order to ensure the efficient operation of the creation interaction (Nirmala et.

al., 2022).

The management and control of an organization's inventory refers to the process

of controlling the stock held by the company or the flow of goods and services in

response to customer demand. Inventory management and control are extremely helpful

in the modern business environment since they play such an important role in

determining the success or failure of a company in an industry that features significant

levels of competition. In order to improve product quality, improve competitive ability,

reduce inventory carrying costs by reducing inventories, enhance service, and increase

operational flexibility through pull systems, it is essential to be knowledgeable about the

benefits of inventory management and how it is used.

In order to successfully run manufacturing operations, it is necessary to ensure

that an accurate inventory level is being maintained. As a result, in order for them to

accomplish their objective of gaining a competitive advantage, they place a greater

emphasis on the effectiveness of the system that they use to manage their inventory

(Masalagedara & Gamage, 2020). All of the functions in a company or organization are
intertwined with and dependent upon one another, and they frequently overlap with one

another. This holds true regardless of the type of business or organization in question.

The business delivery function is supported by a number of essential subfunctions, the

supply chain management, logistics, and inventories subfunctions being the most

important of these essential subfunctions.

As a consequence of this, those in charge of the finances as well as those who are

in charge of marketing should place a significant amount of emphasis on these

responsibilities. The management of inventories is a very important role because it not

only affects the condition of the supply chain but also has an effect on the ability of the

balance sheet to accurately reflect the financial situation of the company. This role has a

significant impact on both aspects. Every business makes it a top priority to ensure that

they always have the appropriate amount of inventory on hand in order to successfully

fulfill their customers' orders without running the risk of having either too much or too

little of a particular item. This is because having either too much or too little of an item

can have an impact on the overall profitability of the company.

One of the essential tasks included in the supply and distribution management

function is managing the inventory, which is also one of the other essential operations.

One of the most important assets that a company possesses is its inventory stock. This is
especially true for businesses that are involved in the production line as their inventory is

one of the most important assets they have. In the event that there is a problem

associated with the inventory, such as a condition in which there is not enough stock, it

will be difficult for the company to carry out its business operations. An out-of-stock

problem occurs when a company does not have sufficient inventory on hand to satisfy

the demand of its customers in a timely manner. This type of problem is known as a

supply chain issue. Therefore, the task of effective inventory management is to ensure

that the quantities of inventories are sufficient enough to fulfill the demand without

having an excess stockpile of the item. This can be achieved by making certain that the

quantities of the inventories are adequate to meet the requirements of the demand. The

investigation of the myriad approaches to effective inventory management and control

that are put into practice by a selection of organizations situated in Region II is the

primary objective of this study.

In any company or organization, all of the functions are linked and connected to

one another, and they frequently overlap with one another. Some essential aspects, such

as management of supply chains, logistics, and inventory, form the backbone of the

business delivery function. As a result, not only marketing managers but also those in

charge of the finances should place a strong emphasis on these functions. The

management of inventories is a very important function that not only determines the state
of the supply chain but also has an impact on the balance sheet's ability to accurately

reflect the company's financial situation. Every company makes it a priority to always

have the right amount of inventory on hand in order to fulfill their orders without running

the risk of having either too much or too little of a certain item, both of which can have an

effect on the company's bottom line. The inventory is always subject to change.

Managing an inventory requires an ongoing and meticulous analysis of both internal and

external factors, as well as control achieved through careful planning and periodic

evaluation. Inventory planners are employed by the majority of businesses, and theirs is a

specialized department or job function. These individuals continuously monitor, control,

and review inventory, and they also act as a liaison between the production, procurement,

and finance departments.

Statement of the Problem

This study is aimed to to investigate the various methods of efficient inventory

management and control utilized by chosen agencies located in Region II. Specifically, it

aimed to answer the following questions:

1. What are the profiles of the respondents in terms of?

a. Age
 b. Gender

c. Ethnicity

d. Monthly Income

2. What are the different branches of inventory management that are practiced by

the respondents?

3. What actions do the respondent do if ever their inventory management and

control practices doesn’ t affect the business well?

4. Is there a significant relationship between the respondents’ profile and to the

research study?

Hypothesis

Hypothesis 1: There is no significant relationship between the respondents’ profile and

to the research study.

Significance of the Study

This study will be useful to the following:

manage their business inventory and to assess different problems regarding the topic.

Agency- This study will benefit suppliers because this study also provides insights

about which products sell and in what volume. Those who run the agencies can use that

knowledge as leverage to negotiate better prices and terms with suppliers.

Future Researchers- This study will hand over some ideas and also interest to

future researchers as a reference for the accomplishment of their study regarding

inventory management and control in different agencies around the country.

Scope and Delimitation

Businesses and other types of organizations are frequently confronted with difficult

operational problems, the successful resolution of which calls for specific expertise in

applied statistics, optimization, stochastic modeling, or some combination of these fields.

Materials that are being processed, are waiting to be processed, or are already being

processed are all examples of inventories. They can be found everywhere and in every

conceivable aspect of the economy. If one looks at the balance sheet of virtually any

company, for instance, they will notice that a significant portion of the company's assets
are comprised of inventories of raw materials, components and subassemblies used in

the production process, and finished goods.

The majority of managers do not like inventories because they are similar to money that

has been placed in a drawer. Inventories also involve assets that are tied up in

investments that are not producing any return and, in fact, are incurring a borrowing cost.

They incur additional costs for the care of the material that is being stored, and the

material itself is at risk of going bad and becoming obsolete. In the course of the previous

two decades, the business sector has developed a plethora of programs, all of which are

focused on maximizing productivity on the shop floor by decreasing the amount of

inventory that is kept on hand.

Because of economies of scale, having a large inventory requires fewer replenishments

and may reduce the costs associated with placing orders. In-process inventories lessen

the effects of the effects that are caused by the variability of the production rates in a

plant and protect against the occurrence of failures in the processes. Better service to

customers can be achieved through accurate inventory of final goods. One of the most

important aspects of the product to take into account when marketing it is its versatility

and accessibility.
The purpose of inventory management is to gain a comprehensive understanding of

stock levels as well as the location of stock within warehouses. The flow of products

from the supplier through the production process and on to the customer is monitored by

software designed for inventory management. Inventory management keeps track of all

activities that occur in the warehouse, including stock receipt, picking, packing, and

shipping. In addition, the process of managing and controlling inventories is a component

of overall inventory management. The management of the flow of items throughout the

workplace is what inventory control is all about.

Definition of Terms

Inventory- a complete list of items such as property, goods in stock, or the contents of a

building.

Agency- a company or organization that was founded with the purpose of providing a

specific service, most frequently one that involves coordinating financial dealings

between two other parties.

Stock- is the supply of finished goods that are available for sale, and inventory includes

not only finished goods but also the components that are necessary to create finished

products.
Supply Chains- the network that includes all of the people, organizations, resources,

activities, and technology that are involved in the production and sale of a product.