Assessment of The Inventory Management Practices of Select Manufacturing Companies

Republic of the Philippines
PHILIPPINE STATE COLLEGE OF AERONAUTICS

Institute of Liberal Arts and Sciences
ASSESSMENT OF THE INVENTORY MANAGEMENT PRACTICES

OF SELECT MANUFACTURING COMPANIES
An Undergraduate Thesis Presented to the Faculty of the

Philippine State College of Aeronautics
Piccio Garden, Villamor, Pasay City
In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF ARTS MAJOR IN AVIATION LOGISTICS
CELSO JEDIDIAH R. BONBON

LARA BLESS C. DALIDA
JAN MARTIN D. AFUANG
March 2017
CHAPTER I: THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
Manufacturing is an important sector since it presents an integral
part in the countrys economic development. According to Batungbacal (2011),
the manufacturing sector is the main engine of the economy because it provides
long-term employment, revenue and innovation. It creates employment
resulting in reduced poverty. Inventory is the life wire of any manufacturing
organization. Inventory management is a crucial factor to the success or failure
of the manufacturing firm because it directly affects the productivity of the firm.
The raw materials, good in progress and finished goods represent the various
forms of inventory. Inventory management is a system that integrate
information, transportation, material handling, warehousing, control of supplies
and ensuring the security of inventory. Effective Inventory management is an
important factor to the success and growth of organizations (Augustine, 2013).
Too much inventory consumes physical space and creates a financial burden,
on the other hand, too low inventory disturbs the ongoing operations leading to
poor customer satisfaction (Ngumi, 2015). Poor inventory management
practices lead to business failure. Thus effective inventory management
practices must be utilized. Effective inventory management practices are a
potential driver for enhancing the companys profit. Therefore, the purpose of
this study is to assess the inventory management practices of select
manufacturing companies.
BACKGROUND
Inventory is a quantity of goods and materials on hand (USLEGAL,
2016). Ballon (2004) argues that Inventories are stocks of raw materials,
supplier materials and finished goods throughout the firms production and
logistics channel (As cited in Kasim, Zubieru & Antwi 2015). Moreover, Ama
(2000) states that inventory is a stock of goods used by the firm for sale and
the components that make up the goods (As cited in Esther, 2008).
Firms have different reasons for keeping inventory. Esther (2008) states
that the fundamental reasons for maintaining inventory is to have the
manufactured products whenever they are demanded for and without it
customer would have to wait until their ordered goods are manufactured. Other
reasons stated by Esther (2008) are the fluctuating nature of price of raw
materials.
Various organization have different types of inventory but the most
common of all are stock of raw materials, work in progress, finished goods
(Misoi, 2015). According to Esther (2008), raw materials are unprocessed
natural product for manufacturing process, work in progress is an incomplete
ongoing piece of work and finished goods are products that are completed and
ready to be sell.
Inventory management systems have been concerned with business
firms for many years. Firms are searching for sources of sustainable
competitive for their business operations and one of that is inventory

management systems. According to Misoi (2015), the very purpose of
inventory management is to ensure the continuous production and customer
service levels at minimum cost. Inventory management functions are to carry
adequate stock to avoid stock and to ensure that the optimum level of stock is
maintained to minimized inventory cost (Ethopia, 2010). The goal of inventory
management is to hold inventories at lowest possible cost and to ensure
uninterrupted supplies for the ongoing operations (Kasim et al., 2015).
Inventory management has a great impact in a firm. Effective Inventory
management is an important factor to the success and growth of
organizations (Augustine, 2013). It is a potential driver for enhancing profit
(Osei, 2015). It will help the firm to bring out quality finished products by
undertaking projects on time (Osei, 2015). According to Osei (2015),
Inventory management ensures that the firm does planning ahead of time to
avoid shortages and make sure that right quality of materials is at the right
place at the right time.
However, ineffective inventory management is a disadvantage for the
company. According to Augustine (2013), if inventory management is not
maintained properly, the production cannot meet the customers demand
leading to loss of revenue of the firm. Ineffective inventory leads to many
problems such as overproduction, underproduction excessive stocks and
delays in delivery of materials. (Munyao, Omulo, Mwithiga, and Chepkulei,
2015). Even a too small problem in inventory can cause business failures
(Raphella, Nathan & Chitra, 2014).

Lysons (2000) maintains that the concept of inventory management
practices principally focuses on the techniques used to ensure that the stocks
are kept at levels which provide maximum service levels at minimum costs (As
cited in Ngumi, 2015). They are activities and functions used by the firm to
manage stocks (Njoroge, 2015). Efficient inventory management practices
should practically answer the two important questions: how much should be
ordered and when it should be ordered in order to help the firm to be more
productive and efficient than before (Ngumi, 2015). Jonsson & Mattsson (2003)
states that they concern balancing supply and demand (As cited in Ngumi,
2015). The inventory management practices used in the study were Economic
Order Quantity, Just-In-Time, ABC analysis, First-In-First-Out, Stock Review,
Barcoding and Enterprise Resource Planning.
In any business operations, challenges are inevitable. There are
challenges in the implementation of the inventory management practices.
Kinyua (2016) concludes that the major challenges faced by the firms are
financial problems, lack of personnel knowledge and inaccessibility of critical
information. Other challenges are quick and highly unpredictable changes in
market conditions and lack of supportive and effective technology. Moreover,
Njoroge (2015) added the following challenges that can hinder the
implementation of inventory management practices: lack of commitment by top
management, failure to invest in modern technologies, unreliable suppliers and
poor infrastructure.
Because of the limited literature on the inventory management of
manufacturing firm, this study has a great importance. Therefore, the purpose
of this study is to bridge that gap by assessing the inventory management
practices of the select manufacturing firms.

CONCEPTUAL FRAMEWORK
Manufacturing Firms
Inventory Management
Practices
Economic Order Quantity

Just-In-Time (JIT)
ABC Analysis
First-In-First-Out (FIFO)
Stock review
Barcoding
Enterprise Resource Planning (ERP)
The purpose of this study was to assess the inventory management
practices of select manufacturing companies. The conceptual framework
behind the basis of this thesis holds the view that inventory management
practices was comprised of Economic Order Quantity, Just-In-Time (JIT), ABC
Analysis, First-In-First-Out (FIFO), Barcoding, Stock review and Enterprise
Resource Planning.
STATEMENT OF THE PROBLEM
The aim of this study was to assess the inventory management practices
of the select manufacturing companies. To achieve this objective, the following
research questions were formulated.
1. Which of the following inventory management practices is being
used by the firm?
a. Economic Order Quantity (EOQ)
b. Just-In-Time (JIT)
c. ABC Analysis
d. First-In-First-Out (FIFO)
e. Stock Review
f. Barcoding
g. Enterprise Resource Planning (ERP)
2. How do the firms implement the given inventory management
practices?
3. What are the best inventory management practices and the
challenges faced by the firms in implementing them?

ASSUMPTIONS
In line with the purpose of the study which was to assess the
inventory management practices of the select manufacturing firms, the
following statements were assumed:
1. The inventory management practices used by the firm were Barcoding,
Economic Order Quantity (EOQ) and Just-In-Time (JIT).
2. The firm implemented barcoding by using scanners to scan the items
for checking and storing information about the items. In Economic
Order Quantity, the firm determined the optimal order quantity then
procured and made the specified items. In Just-In-Time, the firm
ordered and made only the required products to order and to make
according to the customer demand.
3. The best inventory management practice was the Economic Order
Quantity (EOQ) and the challenges in implement it was lack of
commitment by top management, incompetent staff and lack of
effective technology.
SIGNIFICANCE OF THE STUDY
Nation Building
The study will contribute to the development of the logistics and supply chain
management industry in the nation by participating in the research
development. Furthermore, the findings of the study will educate the society by
exemplifying the importance of having efficient inventory management in the
development of logistics and supply chain management in the business industry
of the nation.
Creation of Values
The study will be the epitome of professionalism and responsibility by
utilizing the researchers exceptional knowledge and taking full responsibility
for every conducted research. Moreover, this study will be the representation
of integrity and collaboration by undertaking this study in accordance to the
principles of the institution and by fostering good relationship and maintaining
an atmosphere of trust, mutual assistance and openness with the research
adviser, co-researchers and practitioners.
Learning Process
The study will be a demonstration of judiciously applying scientific principles
in solving the problem. Additionally, the findings of the study will contribute to
the improvement of the knowledge in the subject matter by providing additional
information and uncovering the truths behind the subject.

SCOPE AND DELIMITATION
The aim of the study was to assess the inventory management
practices of the select manufacturing firms. The scope of the study was the
select manufacturing firms in Metro Manila. The scope of the study was limited
to the inventory management practices of the select manufacturing firms.
The study used qualitative research design. Qualitative research
design aimed to determine what the people think and feel about a certain topic
or situation (Macdonald & Headlam, 1986). The data gathering instrument used
was interview, consisting of questions about inventory management practices.
The interview was analyzed using thematic analysis.

DEFINITION OF TERMS
AXAPTA: Microsoft Dynamics AX is a multi-language, multi-currency, industry-
specific global enterprise resource planning (ERP) software product.
Barcoding: Using barcode symbols to identify an item. Bar coding is the most
common form of automatic used in automatic data-capture technologies and
bar codes track virtually everything: from retail goods to medical records, and
machinery to human beings.
Bill of Materials: is a list of the parts or components that are required to build
a product.
Economic Order Quantity (EOQ): is an equation for inventory that determine
the ideal order quantity a company should purchase for its inventory given a
set cost of production, demand rate and other variables. This is done to
minimize variable inventory costs, and the formula takes into account storage,
or holding, costs, ordering costs and shortage cost.
Enterprise Resource Planning (ERP): is a process by which a company
(often a manufacturer) manages and integrates the important parts of its
business. An ERP management information system integrates areas such as
planning, purchasing, inventory, sales, marketing, finance and human
resources.
Information management: Practices used to ensure availability of information
during the manufacturing stages of products for efficient execution.

Inventory: it is the stock of any item or resource used in an organization.
Inventory management: policies, procedures, and techniques employed in
maintaining the optimum number or amount of each inventory item.
Just-in-time (JIT): is an inventory strategy companies employ to increase
efficiency and decrease waste by receiving goods only as they are needed in
the production process, thereby reducing inventory costs.
Manufacturing Company: is a commercial business that converts raw
materials or components into finished products. These products are intended
to meet the expectations and demands of customers.
ORACLE: is one of the largest vendors in the enterprise IT market, offering a
wide variety of software and hardware technologies for use in corporate
applications.
Practices: It is a procedure followed in doing something.
SAP: a global software company, is one of the largest vendors of ERP and
other enterprise applications.
Supply chain management: Is the active management of supply chain
activities to maximize customer value and achieve a sustainable competitive
advantage.
Warehousing and transportation: The process of storing and transporting a
given product.
Yield: is the income return on an investment, such as the interest or dividends
received from holding a particular security.

CHAPTER II: RESEARCH METHODOLOGY
RESEARCH DESIGN
This study aimed to assess the inventory management practices of
the select manufacturing companies. The study concerned the current status
of the adopted inventory management practices of the select firm. Therefore,
we used qualitative research design. Basically, qualitative research design
explores behaviors and experiences. According to Dawson (2007), its goal is
to get an in-depth opinion from the respondents. Moreover, qualitative research
design aims to determine what the people think and feel about a certain topic
or situation (Macdonald & Headlam, 1986). Therefore, the study utilized
interview as the data gathering instrument of the study. Interview was used to
know the interviewees perceptions and attitudes about the issues (Macdonald
& Headlam, 1986). The study used purposive sampling technique. The main
goal of purposive sampling was to focus on particular characteristics of a
population that are of interest, which will best enable you to answer your
research questions.
RESEARCH LOCALE
The research locale of the study was the select manufacturing
companies in Metro Manila. The target firm for this particular study was the
Microsemi Semiconductors Manila (Philippines) Inc., Continental Corporation
and Armak Tape Corporation. The Operations Manager, Purchasing
Supervisor, Production Planner and Industrial Engineer was the respondents
of this study.
SAMPLING TECHNIQUE
We utilized the purposive sampling technique. The main goal of
purposive sampling was to focus on particular characteristics of a population
that are of interest, which will best enable the respondents to answer your
research questions.
DATA GATHERING INSTRUMENT
The data gathering instrument used in the study was a structured
interview. This interview style followed a set of specific questions that was
asked systematically (Macdonald & Headlam, 1986). The type of interview used
was both fact-finder and experiential because it was used to obtain specific
information and to draw out peoples feelings, attitudes and perceptions
(Macdonald & Headlam, 1986). It tackled the inventory management of the

select manufacturing company. The guide was consisted of questions aimed to
determine and to explain the inventory management practices of the firm. The
last question aimed to know best inventory management practices and the
challenges in implementing it.
DATA ANALYSIS
The data were analyzed using thematic analysis. Thematic analysis
was concerned in identifying and drawing themes on the interview (Macdonald
& Headlam, 1986). We identified the broad theme or argument in the interview
and build up the analysis in the most cohesive manner.

CHAPTER III: RESULTS AND DISCUSSION
This chapter focused on presenting the findings of the study using
tabular data. The statement of the problem was stated followed by the data
gathered. The research questions established at chapter one and which are to
be met in this chapter include:
1. Which of the following inventory management practices is being used
by the firms?
a. Economic Order Quantity (EOQ)
b. Just-In-Time (JIT)
c. ABC Analysis
d. First-In-First-Out (FIFO)
e. Stock Review
f. Barcoding
g. Enterprise Resource Planning (ERP)
2. How do the firms implement the given inventory management
practices?
3. What are the best inventory management practices and the
challenges faced by the firms in implementing it?

INVENTORY MANAGEMENT PRACTICES USED BY THE FIRMS
The inventory management practices are the activities and functions
used by the firm to manage stocks (Njoroge, 2015). The company A represents
Microsemi Semiconductors Inc., company B represents Armak Tape
Corporation, and company C represents Continental Corporation.
Table 1: Inventory management practices used by the firms
COMPANY A COMPANY B COMPANY C
EOQ EOQ
JIT JIT JIT
ABC Analysis
FIFO FIFO FIFO
STOCK STOCK
STOCK REVIEW
REVIEW REVIEW
BARCODING BARCODING
ERP ERP ERP

The Economic Order Quantity is the level of inventory that minimizes
holding cost and ordering cost. It determines the optimal order quantity that will
minimize the total inventory cost (Kasim et al., 2015). Maintaining optimal
inventory levels will reduce the cost of possible interruptions or of loss of
business due to the scarcity of products and reduce supply costs and protects
against price fluctuations (Nyabwanga et al., 2012). The cost of holding stock
tends to increase with the stock level and so could be reduced by ordering a
small amount from suppliers each time, (Kasim et al., 2015). Therefore,
business owners/managers should keep their inventory to an optimum level.
Just-In-Time
The philosophy of Just-In-Time (JIT) is to eliminate waste. According to
Carlson (2002), JIT is the inventory management practice with the objective of
maintaining just the right amount of inventory at the right time and at the right
place (As cited in Ngumi, 2015). The objective of JIT is to have only the required
inventory (Ngumi, 2015).
ABC Analysis
ABC analysis is an inventory management practice that classifies the
inventory items into three categories according to their value. The inventories
are classified into three categories: A, B and C (Kinyua, 2016). The A item
receives the large portion of attention by the management, while the B and C
items receives the least attention (Kinyua, 2016).
First-in-First-out (FIFO)
Basically, this is a method used to calculate the value of inventory on
hand at the end of the accounting period and the cost of goods sold (Njoroge,
2015). First-In-First-Out (FIFO) is the inventory management practice that
ensures the inventory purchased first is sold first (Njoroge, 2015).
Stock Review
Stock review or inventory checking is the physical verification of the
condition of the inventories (Njoroge, 2015). It can be performed periodically or
continuously. Periodic system generally refers to annual stock count however,
it can also refer to half yearly, quarterly, monthly, bi-monthly, weekly, or even
daily.
Barcoding
Barcoding is used to track inventory for the purpose of determining the
level of inventory, reorder, deliveries and sales (Kinyua, 2016). It helps to track
the inventory items anytime. Barcoding system helps to link the work orders.
The purchase orders are linked to the level of the stock (Kinyua, 2016).
Moreover, it provides more accurate data while saving both time and cost
(Ngumi, 2015).
Enterprise Resource Planning
Enterprise resource planning integrates the business operations of the
firm. It helps to process data quickly and to centralize the data for fast
transactions. According to Njoroge (2015), ERP improves the planning for
inventory, inventory accuracy and connectivity with a wide range of suppliers

IMPLEMENTATION OF THE APPLIED INVENTORY MANAGEMENT
PRACTICES BY THE FIRM
Table 2: Economic Order Quantity
ECONOMIC ORDER QUANTITY (EOQ)

Forecast by the Planning Group
Minimum Order Quantity (MOQ

COMPANY A
AXAPTA
MRP system
COMPANY C SAP system
COMPANY A
According to company A, the firm will determine the Economic Order
Quantity by the forecasting of the planning team based on the past record of
the transactions and the order of the customer. The major factor to be
considered in forecasting is the cost of materials. The MOQ is determined after
the EOQ. It is the number of units the buyer should purchase. Company A
stated that if the MOQ is 600 and the customers order is 500, they need to
negotiate with the buyer to buy all the 600 units to make a profit. the firm uses
AXAPTA to see the orders of the customer.
COMPANY C
Company C uses MRP system to control the flow of supplies to meet the
planned demands which is the EOQ and the SAP system to coordinate the
information flow.
Table 3: Just in Time
JUST IN TIME
Meet the lead time

COMPANY A
Make to stock
Make to order
COMPANY B
ERP
COMPANY C MRP (Materials Requirements Planning)
COMPANY A
Company A stated that the firm should meet the lead time given by
the customer to finished the materials that they ordered.
COMPANY B
According to Company B, the firm uses JIT for make to stock and
make to order purposes. If the stock is reduce, the firm will replenish it as soon
as possible. If there is an order, the firm will automatically make products.
Moreover, company B stated they use ERP which is Oracle to do JIT.

COMPANY C
According to company C, is the same as MRP but the supplier will just
deliver the needed requirement of the client.
Table 4: ABC Analysis
ABC ANALYSIS
Bill of Materials (BOM)

COMPANY A
COMPANY A
According to company A, ABC is the bill of materials. Bill of materials is
the list of materials needed to create a product. In ABC analysis, the materials
are divided into three (3) categories A, B and C. A is the essential parts or
primary parts like the die, B is the components and C is the customer
accessories or additional requirements.

Table 5: First In First Out
FIRST IN FIRST OUT
Ideal Method
Sometimes it is not followed

COMPANY A
Expiration Date
Manufacturing Date
COMPANY B Purchased Order Number
Newly received product

COMPANY C
COMPANY A
According to company A, it is an ideal inventory management practices
because it makes the process smooth. Moreover, company A stated that not all
the times it is followed because of different demands of the customer. According
to company A, FIFO means that each item has expiration date. If the items that
expired are not used it will result in loss of profit. So, they ensure that the first
item purchased is used first. Company A, stated that chemicals and some spare
parts have expiration.

COMPANY B
Company B stated that the firm ensures that the items purchased first is
manufactured first based on the P.O number and the manufactured first is sold
first based on the manufacturing date
COMPANY C
According to company C, the newly received product should be first
issued to production. Basically, FIFO is used for best applied to the products
that has expiration date like chemicals.

Table 6: Stock Review
STOCK REVIEW
Review the current and the needed inventory
Automatic replenishment
AXAPTA
COMPANY A
Weekly and quarterly
Logistics group
Daily, weekly, monthly and annually

COMPANY B
Computer system and tally card
Weekly, monthly & annually
COMPANY C ERP
COMPANY A
According to company A, the firm reviews both the current stock and the
standard stock needed to maintain in each item. Automatic replenishment
should be done when the current stock does not match the standard stock
needed and it is determined by the stock review process. Moreover, company
A stated that the firm do their stock review quarterly or every three (3) months.
Company A, stated that they do their inventory review weekly and quarterly.
The logistics group is responsible for reviewing the inventory weekly and
annually. The system used for reviewing is AXAPTA but the logistics group is
responsible for the actual count. It is done to track the current amount of
inventory to initiate replenishment if the inventory is below the MOQ, and to
prevent pilfering.
COMPANY B
According to company B, they do stock review generally daily but also
weekly, monthly and annually. In system, they used computer and tally card.
Company B stated that they match the review using computer and tally card to
have accurate data.
COMPANY C
Company C, stated that they do their stock review weekly, monthly &
annually using automatic system or ERP. Also it depends on the standard
process of the department for their tracking and traceability.

Table 7: Barcoding
BARCODING
Makes the transaction fast and reliable

COMPANY A
Finished Goods
10 scanners
COMPANY C
2D type of barcode
COMPANY A
According to company A, if the staff are in the old age, it would be
difficult for them to do manual operations, and it would definitely lead to errors
therefore, barcode readers are needed to make the operation fast and reliable.
COMPANY C
According to company C, the firm uses barcoding to trace the sales output
of the finished goods and for report purposes. They have 10 barcode scanners
and the type of their barcode is 2D.

Table 8: Enterprise Resource Planning
ENTERPRISE RESOURCE PLANNING
AXAPTA (Microsoft Dynamics AX)
Regulated by ITAR (International Traffic in
Arms Regulation)
COMPANY A
Inventory Management
Sales, Planning, Purchasing, Production
Oracle
COMPANY B
Planning, Ordering, Sales & Inventory
SAP System
Human Resources, Finance, Purchasing,

COMPANY C
Planning & Logistics
COMPANY A
According to company A, the ERP of the firm is AXAPTA. Basically, the
first function of it is sales and is connected to planning and production. In
production, you can view the status of your product. This ERP is regulated by
the main headquarters in the U.S.A. There are some items that are controlled
by the main headquarters because of the International Traffic in Arms
Regulations (ITAR). Therefore, it cannot be seen without the headquarters
permission. The ERP is used in both inventory management and production.
According to company A, in inventory management, it helps to track inventory

lot, warehouse storage and the rejected items and the equivalent lost money,
on the other hand in production, it helps to see the number of items in the
production, quantity of coming items and the number of rejected items.
COMPANY B
Company B stated that their ERP is Oracle. They use it for different business
activities such as planning, ordering, sales and inventory.
COMPANY C
Company C, stated the ERP of the firm is SAP. SAP stands for System,
Applications and Products. The business processes included in SAP are human
resources, finance, purchasing, planning & logistics. It is limited based on the
people transactions or entry. It is controllable to all areas including reports and
proper approvals.
THE BEST INVENTORY MANAGEMENT PRACTICES AND THE
CHALLENGES FACED IN IMPLEMENTING IT
Table 9: Best Inventory management practices
BEST INVENTORY MANAGEMENT PRACTICES
ERP (AXAPTA)
COMPANY A
All work hand in hand
All are important

COMPANY B
For complex data, ERP
ERP (SAP)
COMPANY C
COMPANY A
According to Company A, the best inventory management practice is ERP
because it is used in all sites of the company. The ERP of the firm is AXAPTA.
It tracks and monitors the inventory lot, warehouse storage and the rejected
items and the equivalent lost money. In production, ERP involves costing
process, manpower labour, material cost, indirect and direct cost, finished
goods cost and capacity of the line. Moreover, company A stated that the other
feature of AXAPTA is the process for the item creation. Company A, stated that
all inventory management practices work hand in hand with each other. Each
system needs the help of the other system to function well. If there is JIT but no
EOQ it is not okay. There is JIT but with no FIFO resulting in stocked materials
that are not used.

COMPANY B
Company B, stated that all the inventory management practices are
important because these are associated and supported by one another. But in
terms of complex data, the ERP is the best to use.
COMPANY C
According to company C, the best inventory management practices is
the ERP because it can use traceability.

Table 10: Challenges
CHALLENGES
Lack of commitment by the top
management
Unreliable suppliers
COMPANY A
Adaptability to the technology upgrade
Difficulty in training
Poor relationship with the supplier
Unreliable supplier
COMPANY B
Lack of real time technology
Limitation on peoples entry

COMPANY C
COMPANY A
According to company A, the challenges in implementing the ERP is first
lack of commitment by the top management. If the management is not fully
implementing it in other sites or areas many issues will arise. The second is
unreliable suppliers or poor supplier relationships. When the suppliers set a
specified time of delivery then failed to meet it, it will result in delay, hence
making domino effect on the process. There are instances that the items are
either lost or destroyed in shipping the materials. So, if you order 900 you
should have an allowance like 100 for adjustments. Third is lack of proper
training. There are also instances that the purchasing department fails to pay
the supplier resulting to lack of supplies. The training of the ERP of the firm is
done by the U.S based trainers so when the trainers return to the U.S. then you
have questions about the ERP it is hard to follow up them. Apparently, if the
staff are not knowledgeable in using the ERP it will definitely lead to errors.
Lastly, sometimes when the system was upgraded the staff cannot easily adapt
the new upgraded features therefore resulting to work inefficiency. So, they
need to be flexible in changes.
COMPANY B
According to company B, the firms problems are unreliable supplier and
lack of real time technology. In unreliable supplier, their problem is the
unexpected hold of the imported materials, hence resulting to delay. In
technology, the firm lacks real time technology to produce real time data
resulting to manual operations such as encoding.
COMPANY C
Company C, stated that the ERP is limited to the peoples transaction
like a garbage in garbage out.

CHAPTER IV: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of the study findings,
conclusions and recommendations drawn from the study findings. The chapter
is based on the objective which is to assess the inventory management of the
select manufacturing firm.
SUMMARY
The purpose of this study was to assess the inventory management
practices of the select manufacturing firm. The inventory management
practices selected for the study were Economic Order Quantity, Just-In-Time,
ABC analysis, First-In-First-Out, Barcoding, Stock review and Enterprise
Resource Planning. Qualitative research design was used as the research
methodology and interview as the research methods or the instrument used.
The study used purposive sampling technique and thematic data analysis.
The research established that the inventory management practices
used by the firms were Economic Order Quantity, Just-In-Time, ABC analysis,
First-In-First-Out, Barcoding, Stock review and Enterprise Resource Planning.
The firm implemented the given inventory management practices according to
its basic implementation. Company A, used EOQ, FIFO, JIT stock review,
barcoding, ABC analysis and ERP. Company B, used JIT, FIFO, stock review
and ERP. Lastly Company C, used EOQ, JIT, FIFO, stock review, barcoding
and ERP. The companies implement their inventory management practices
according to the availability of companys system and procedures.
According to each company the best inventory management practices
according to each company are the following: Company A - ERP (AXAPTA), All
work hand in hand, Company B all are important and for complex data, ERP,
Company C - ERP (SAP). The challenges faced by the companies in
implementing their inventory management practices are the following:
Company A - lack of commitment by the top management, unreliable supplier,
lack of proper training, Adaptability to the technology upgrade, unreliable
suppliers, difficulty in Training, poor relationship with the suppliers. Company B
- unreliable supplier, lack of real time technology, company C - limitation on
peoples entry.
CONCLUSIONS
We therefore concluded that the select manufacturing company was
good at managing their inventory because all the companies at least utilized
the stated in inventory management practices. Moreover, the company
implement their inventory management practices in accordance with the
literature review. The study concluded that the best inventory management
practice is the ERP because it integrates all the business functions and is used
for complex computing of data. In the challenges, we concluded that the main
challenges faced by the firms are unreliable suppliers and the lack of
technology or technology problems.
RECOMMENDATIONS
The study recommended that the firm should embrace the effective
implementation of the inventory management practices specially the Enterprise
Resource Planning. They should adapt modern technology such as real time
technology to manage the inventory accurately. Furthermore, they should
develop and maintain a strong relationship with the supplier to prevent
customer related problems that hindered the effective implementation of the
inventory management practices. Lastly. The firm should focus on developing
competitive skills for inventory management among their staff or employee, via
special training programs and certifications, so that such staff can manage the
inventory successfully.
REFERENCES
Hanson, O.Y., Ackah, D., & Agboyl, M.R. (2015). Assessing the Impact of
Efficient Inventory Management on Organization. International Journal of
Advanced Research in Computer Science and Software Engineering.
Retrieved from
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0104.pdf
Kasim, H., Zubieru, M., & Antwi, S.K. (2015). An Assessment of the Inventory
Management Practices of Small and Medium Enterprises (SMEs) in The
Northern Region of Ghana. European Journal of Business and
Management. Retrieved from
http://www.iiste.org/Journals/index.php/EJBM/article/viewFile/23829/2440
0
Kinyua, D., M. (2016). Inventory Management Practices and Performance of
Consumer Goods Manufacturing Firms in Nairobi, Kenya. Retrieved from
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Munyao, R.M., Omulo, V.O., Mwithiga, M.W., & Chepkulei, B. (2015). Role of
Inventory Management Practices on Performance of Production
Department A Case of Manufacturing Firms. International Journal of
Economics, Commerce and Management. Retrieved from
http://ijecm.co.uk/wp-content/uploads/2015/05/35107.pdf
Ngumi, F.N (2015). Inventory Management Practices and Productivity of
Large Manufacturing Firms in Nairobi, Kenya. Retrieved from
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tory%20Management%20Practices%20And%20Productivity%20Of%20La
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Njoroge, M.W (2015). Inventory Management Practices and Performance of
Public Hospitals in Kenya. Retrieved from
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joroge_Inventory%20Management%20Practices%20and%20Performance
%20of%20Public%20Hospitals%20in%20Kenya.pdf;sequence=3
Nsikan, E.J, Etim, J.J., & Ime, T.U. Inventory Management Practices and
Operational Performance of Flour Milling Firms in Lagos, Nigeria.
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Nyabwanga, R.N & Ojera, P. (2012). Inventory Management Practices and
Business Performance for Small Scale Enterprises in Kenya. Retrieved
from
http://www.academia.edu/9195070/Inventory_Management_Practices_an
d_Business_Performance_for_Small-Scale_Enterprises_in_Kenya
APPENDIX A: RESEARCH INSTRUMENT

INTERVIEW GUIDE
1. Which of the following inventory management practices are being used
by the firm?
h. Economic Order Quantity (EOQ)

i. Just-In-Time (JIT)
j. ABC Analysis
k. First-In-First-Out (FIFO)
l. Stock Review
m. Barcoding
n. Enterprise Resource Planning
2. How do the firm implement the given inventory management practices?

(See the follow up questions)
3. What are the best inventory management practices and the challenges
encountered in implementing it?
FOLLOW UP QUESTIONS (Question no. 2)
ECONOMIC ORDER QUANTITY (EOQ)
- How do you maintain an optimum/favorable level of inventory?
- How do you estimate on how much of an item should be ordered and
when it should be ordered?
- How the EOQ minimizes the inventory holding and ordering cost?
-
JUST-IN-TIME (JIT)
- How do you maintain that you have only the required inventory when it
is needed?
- How do you track/monitor your inventory to ensure that you have only
the required inventory when it is needed?
ABC ANALYSIS
- How do you divide your inventory/products into three (3)
categories/groups? Explain?
- What are the A items, B items and C items?
- How do you regularly monitor and give more attention to the A items than
B items and C items?
First-In-First-Out (FIFO)
- How do you ensure that the inventory purchased first is sell first?
Stock Review
- How do you review your stocks? daily, weekly, bi-monthly monthly or
annually?
- What system do you use for stock reviewing? Visually, Notebooks, Tally
sheet, Computer? (document)
Barcoding
- How do you use barcode scanners?
- How many scanners/barcode readers do you have?
- What type of barcode do you use?
- What are the benefits of barcode scanners?
Enterprise Resource Planning
- What ERP do you use?
- What are its features?
APPENDIX B: LETTER
APPENDIX C: VALIDATION OF INSTRUMENT

APPENDIX D: CERTIFICATION
CERTIFICATION
This Research Study entitled ASSESSMENT OF THE INVENTORY
MANAGEMENT PRACTICES OF SELECT MANUFACTURING
COMPANIES prepared by Bonbon, Celso Jedidiah R., Dalida, Lara Bless C.,
Afuang, Jan Martin D., in partial fulfillment of the requirements for the degree
of the Bachelor of Arts Major in Aviation Logistics has examined and proofread
by a Licensed English Instructor, this 8th day of March, 2017.
RAMSEY S. FERRER, LPT
Instructor, Language and Literature
Noted by:
ASST. PROF. GARLIE GONZALES
Dean, ILAS
APPENDIX E: DOCUMENTATION
APPENDIX F: TRANSCRIPT
COMPANY A
Barcoding
Kung meron kang assembly stations say 20 stations so do you really need to
have 20 barcoding readers ba? atleast or few units lang cater all or apat lang
so yun yung mga considerations basically nasa top diyan is cost to implement
this so ganun lahat yan so that would be across all whatever system na
pwede niyong ipa input ok cost efficiency let say ano ba yung gain they will
assess ano ba yung gain so if we doing this saves yung time yung cycle nung
pagproprocess kase kunware yung operator matandang matanda na hindi mo
matangal kc by law hindi mo pede tangalin. Type siya ang bagal diba unlike
kung babarilin niya (barcode reader) kahit hindi siya nakatingin yung ticket mo
merong barcode yan babarilin niya sisipol sipol nalang siya instead na
nagtytype siya that would take about 10-15 seconds siya nagtytype
magkakamali pa yun, minsan mali pa yung number diba so prone sa error
unlike yung barcode hindi na so those are just samples ah so un yung mga
benefits so basically you have to identify what are the advantages and
disadvantages then of course yung cost yun yung no key sa business yung
cost.
Ahm depende yan sa ano eh I dont know ah base yan sa tingin ko related
yan dun sa order ng customer order ba ng customer to? So definitely kunwari
airbus nag request sakin I need 600 modules let say 600 units definitely once
na nakita naming na may order siya na 600 I aassess naming yung mga bill of
materials na dapat naming masupplyan. Kc let say sa isang module may
kailangan ako shell case yung kabitan talaga yung housing ng device
kailangan ko ng die which is yung circuit ng device kailanga ko ng other
materials like yung compound yung ilalagay mo sa kaha imagine this one ito
yung kaha pagbukas mo to nuh ilalagay ko yung circuit board ng device ko
tapos para siya takpan meron akong ibang component na ilalagay tapos yung
yung mga consideration nun yung order customer requirement lang yan so
kung oorder si customer ng 600 modules I need to prepare all the materials
needed for me to have all the 600 modules so per module ito yung certain no
of materials needed I need to procure ayun so yung procurement process is a
different thing na mangyayare niyan. 600 lang kailangan mo hindi naman
mangyayare niya na 600 modules, may tinatawag na minimum order quantity
so hindi natin control yun what we can do to really ah assess MOQ is 600 but
the customers order is 500 so may butal akong 100 can we negotiate with the
supplier na instead of 500 is gawing mong 600 with added price lang or talaga
bang pwersado akong bumili ng 2 order ng 500 sobra naman ako sa inventory
ng 400 something like that so depende yan sa forcecasting ng planning group
kung yung 600 mo good for 1 order pero meron silang nakikitang ibang orders
na good for 100 orders so yun yung sobra modun sa isang order mo those
are the things na kailangan paikot ikoting sa business alright.
Stock Review
As I mention kinoconsider yan meron bako nito? May stock ba ako materials
na I can ship right away meron ba kameng nareceive na order? We actually
review as well gaano kalake yung inventory na imamaintain mo in a certain
items kunyare lipsticks ko dapat meron akong 10 lipsticks at below level
kailangan konang mag auto replenish kumbaga so kung 9 na siya oorder
nako. Sometimes kailangang ng regular review kameng ginawa quarterly
yung consumption level at the same time yung inventory level na
minemaintain per item so ganun yung ginawa naming sa stock review.
FIFO
Off course inaapply yan. Inaapply yan. Para smooth yung process though you
should maintain your commitment with the customer. Kapag nagbigay ng
deadline si customer dapat matapos yung product.
ERP
ERP is system talaga na you will see every inventory every lot nasa whip mo
nasa warehouse mo whatever location nung system makikita yun overall from
the incoming up to outgoing so makikita niyo yun sa system kung gano
karame quantity na nasa production, quantity na nasa incoming IQCU and
gano kadame ang nasa fg gano karami yung narereject. Malalaman mo rin
yung how much yung loses kasi yung mga rejected items natin considered
loses yung so may certain cost yun. ERP involves costings process ng labor
yung manpower labor, material cost, capacity ng line mo yung kayang
iproduce kasi meron dung yield factors ilan yung yield raise in out over yield
yield percentage is its a good tool. Maraming pangalan yan sa totoo lang
pero parepareho lang yung function niyan. Axapta kame sa nanjaan yung bill
of materials, backlog inventory namin sa customer, inprocess orders, how we
do item creation. Nandiyan din process steps, selling price, lot status loading
capacity we call it lot yan yung orders ng currently tumatakbo sa line mo youll
see it nasan ba yung lote ko nasa assembly lang pala yung capacity andiyan
din yun loading capacity.
Best IMP ERP

ERP kasi yung erp naming yung AXAPTA yun talaga yung ginagamit naming
across right now across all side ng MICROSEMI. Meron kaming counter pag
nag implement ka nyan kailangan you have to consider all aspects ng bawat
site meron site na hindi namin to magawa di naman to applicable sa ibang
site at the same time meron ding AXAPTA kasi since U.S kami sa AXAPTA
kasi you cannot pull out everythingwhy? Meron kaming ITAR na tinatawag
yung International Traffic Regulation ng U.S may mga items na control ng U.S
government so un yung isang area na hindi namin nakukuha lahat ng
information basically U.S lang of course U.S lang makaka access. Meron
akong mga materials na control ng U.S hindi ko makita anong gagawin ko
dyan? What we normally do is kinocoordinate naming sa counterpart ng U.S,
so I need this materials hindi ko makita sa inventory because of the ITAR.
Challenges
Lack of commitment ng top management of course kung hindi nila
maimplement yan sa iba magkakaisue issue yan, failure to invest basically
cost kasi yan eh. Insufficient funding government that would not be
applicable sa amin wala naman kaming fund, unreliable suppliers kung
halimbawang they commit this one na idedeliver on time tpoas madedelay
pala domino effect un dun sa commitentnamin. Poor record keeping yes.
Poor infrastructure depende yan kung how lean yung manufacturing line
natin dun sa system. Lack of proper training of course kung ako papasok sa
AXAPTA hindi naman ako marunong gumamit but basically part yan ng
training naming nga taong involve sa AXAPTA meron silang proper training.
Funding kasi yung main yung funding tsaka of course direction ng
management yan yung mga main. Financial problem nagkakaroon ng issue
yan yes of course halimbawa medjo yung business ng microsemi humuhina.
Poor relationship w/ suppliers ang issue kasi nyan may process kasi
kaming accreditation ng mga suppliers of course ayan supplier 1,2,3 iaassess
kasi naming yun kung sini yang pwede naming maacredited na pwede din
means partners and hindi naman siguro darating sa point na poor relationship
but aulty naming yun kapag inassess naming na because of mas mababa ung
cost mo pero quality hindi maganda. So un ung mga kinoconsider na setting,
collecting supplier. Lack of supportive and effective technology you are
sourcing out ano ba yung tingin naming ng mapapakinabangan naming
supportive kasi more on parang development ito eh.interms of I need to
modify something sa system hindi naman dadaan sakin lang tapos all side
kasi mamaya minomodify ko again hindi naman applicable

Meron kaming system yung AXAPTA doon lahat pumapasok yung order ng
customer. Pag dumating yung order ng customer sa amin papasok sa system
through sales rep. may sales representative tapos paplanuhin namin kami
ang magpaplano kung ano yung mga materyales na kailangan doon then
sasabihin naming sa purchaser so dun sa pagpaplano kung ano yung mga
kailangan icoconsider yung yield, yung yield alam mo yung yield halimbawa
yung isang bagay ginawa mo possible na magkamali ka so icoconsider mo
yung yield loss then iaadd mo yung sa pagnagorder ka so yun yung point
namin then si purchaser siya yung magoorder sa supplier then kasi yun yung
process nya eh pagdating sa supplier meron siyang icoconsider mo din yung
time na kailangan ni customer sasabihin mo yun sa purchaser ah ganito yung
araw kailangan ko siya kasi iaad mo yung cycle time ng production doon sa
pagorder mo so kailangan mameet mo yung requirements ni customer di ba?
So kailangan yung materyales mo dumating on time para maano mo yung kay
ni customer maprocess kailangan pumasok yung lead time, lead time naman
yung tinatawag naming doon yung para sa production may allotment ka ng
araw kung kalian nila gagawin tapos pati kung kalian sya ishiship, ipapadala
kay customer yun yung time of ordering namin. Naeestimate first yield second
history kailangan alam mo yung history ng product possible yield nya okay
pero nung tiningnan mo sa history what I mean history is di ba nagorder sayo
ilang beses na sya nagorder so iaaverage mo yun ilan ba talaga yung true
yield nya so bukod sa yield is yung history ng product titingnan mo din so yun
pra sa order yung sa EOQ.
Just-In-time
Just-In-time to meet the customer requirements doon pumapasok yung lead
time, yung lead time kasi si customer magbibigay siya sayo ng date
halimbawa ano ba ngayon? March magpapadala sayo si customer meron
silang number of kasi pag nanghingi sila ng quotation halimbawa kayo si
microsemi ako si customer manghihingi ako sayo ng quotation ito yung order
ko ilang bwan mo siyang kayang gawin so doon palang sa quotation
nakalagay na doon yung cycle time naming kung kalian naming siyang
kayang gawin so doon papasok ang Just-In-Time kasi kinoconsider mo na
kung ilang bwan kayang gawin ni microsemi yung product so may cycle time
na tayo doon.
ABC Analysis
Yes, oo kasi ganito yan ang ABC Analysis namin ang tawag naman sa amin
niyan Bill of Materials (BOM) parang kapag magluluto ka di ba ang ano ba
ang ingredients ng sinigang? So ano ang main ingridients ng sinigang which
is yung meat then ang theme nun dun pumapasok ang A which is priority
materials so yung B yung kailangan parin siya sa sinigang pero hindi gaano
so yung C yun naman yung accessory na pwede mo pang mas mapasarap
ang sinigang pero hindi na talaga sya actually kailangan kasi duon palag kay
A and B pwede mo ng maluto yung sinigang so ganun din yung application
niya sa product ng namin ng semicron first ang A is kasi kami die kami eh die
semicron so more on die so yun ang primary product na kailangan mo so
kailangan may die kasi semicron depende sa mga semicron hindi lahat ng
semicron is on die, die ang primary materials nya so ung B ano pa ba ung
mga composition para mabuo mo yung product namin so dun papasok si B si
C minsan customer accessory nalang customer requirements additional
requirements ni customer so yun yung classification nya.
FIFO
First in first out yun yung kung ano yung unang pinadala dito ni supplier kasi
may expiration yun. Kung ano yung unang pinadala ni supplier yun yung una
among gagamitin halimbawa sa Jollibee di ba may bakery na nagsusupply
kay Jollibee ng bans so kung ano yung unang dineliver nung bakery yun yung
una mong gagamitin bakit? Kasi mas madali syang maeexpire so malulugi si
company kapag ang inuna mo is yung huli nyang ipinadala kesa doon sa una
so first in kung ano yung naunang narecieve yun ang una among gagamitin at
yun ang una mong ilalabas yun yung FIFO first in first out so ganun din sa
amin. Sa amin naman merong mga parts or may mga materyales na may
expiration like chemicals tapos yung mga piece parts na ginagamit namin
meron syang expiration so kung ano yung pinakamaagang maeexpire yun
yung una mong gagamitin para hindi malugi yung kumpanya.
Stock review
Meron kaming inventory count ang naghahandle nun is logistics group may
isang section kami ng logistics sya yung nagbibilang every week nung mga
materials na meron kami sa weekly tapos meron ding annual count which is
every quarter every 3 months bibilangin ulit yung mga materyales na meron
sa stores sa receiving tsaka sa linya tapos itatally sya ng accountant so yun
baka kasi merong naguuwi may nagnanakaw so ayun hindi natin alam kasi
meron kaming mga materyales na gold kung bakit meron tayong stock review.
Sa stock review dun nyo rin malalaman kung pag nagorder ba si customer
meron pa akong materyales kasi kung may inventory ka makikita mo dun
kung may materyales ka pa mababalik mo agad yung customer mo na oo
sige madali gawin yan kasi may materials ako so yun yung importante na
nagistock review ka more on sa inventory ng materials sya. Sa purchasing
meron silang parang tinatawag na minimum order requirements pag bumaba
sila dun halimbawa 50 bumba sila dun magrereplenish na agad sila. May
system kami, AX kasi yung ginagamit namin so pag nirun mo yung inventory
journal lalabas lahat dun ung materyales na meron ka iaactual nalang nila yun
yung logistics.
ERP
Sa AXAPTA kasi pag pumasok ka sa sales kasi ang unang buhay ng
AXAPTA is a sales papasok sya sa sales makikita agad yun ng planning
purchasing ng lahat so pag nakita na namin yun crecreate na namin sya ng
production order. Yung production order kasi yung ginagamit namin para
magrun sya sa linya sa manufacturing kasi gagawa kami ng production order
para syang menu ito yung mga requirements namin na gagawin mo sa
production so yun yun then dun din sa AXAPTA dun din natin makikita yung
pag ishiship mo na sya thru system makikita mo na kung tapos na yung
product mo tapos pag nakita mo na tapos na yung product mo dun ka na
magcrecreate ng checklist or picklist na pwede mo ng paalisin si product dun
kana magiinvoice so lahat nasa system na. Wala na kaming manual so lahat
makikita mo yung product kung tapos na sya
Best practices
It work hand in hand kung baga hindi ito magiging okay si just in time kung
wala si point of ordering (EOQ) hindi rin sya magiging okay kung hindi ka
magfa FIFO kasi in time ka nga pero ang ginamit mo naman is yung pinaka
huling product, pinaka huling materyales mo na dapat hindi mo ginamit lugi
parin yung kompanya mo. So parang it work hand in hand talaga kasi
kailangan sya para maging maayos yung isang company.
Challenges
Challenges di ba modern tech na so every now and then naguupgrade ng
system so pag nagupgrade si system kailangan naka jump ka agad eh para
malaman mo agad lalo na kung ikaw ako sanay na ako sa system na ganto
tapos bigla nalang babaguhin kasi nagupgrade kailangan mag upgrade ka rin
so yun yung difference pag nasanay ka sa isang system pag nagupgrade sya
medjo mahihirapan pero as a person kailngan magadopt kailangan flexible ka.
Hindi mo kasi maiiwasan yung unreliable eh halimbawa may binili silang
materyales yung materyales na yun bumagsak sa custom kasi nakacrate
nakabox or nakakahon so sa handling minsan nasira so ineexpect mo
bibigyan ka ng 1000 pieces ang dumating sayo 1000 pieces nga pero 900
lang yung nakuha mong good yung 100 sira possible yun so dapat dun lagi
kang may allowance so kailangan ng yield, kinoconsider nyo yung yield sa
linya yield na possible na masira sya sa labas parang meron kang back up sa
sarili mo na halimbawa umorder ng 1000 inorder 1000 paano kung nasira so
ikaw yung babalikan. Commitment sa management wala naming problema
kasi yung top management naming talagang very supportive sila kung anong
kailangan mo ibibigay nila kasi ang number 1 rules ng ano manufacturing
customer satisfaction so kailangan mong ibigay ang kailangan ni customer
whatever kahit anong gawin mo tumambling ka sa linya or what basta
kailangan kung ano yung kailangan ni customer ibibigay mo. Training minsan
mahirap kasi yung nagtatraining sa amin sa AXAPTA kasi nsa U.S so
foreigner pumupunta lang sya dito para magtrain ng tao so pag halimbawa
wala na sila ang tatanungin mo nalang yung mga taong gumagamit ng
AXAPTA so yun din minsan yung mahirap pa gang nagtetrain sa inyo is
galling ibang bansa. Training naming wala png binibigay na training pero nsa
budget na ng kompanya naming. Poor relationship sa supplier paminsan
nagiging problema ng purchasing kasi purchasing side yun eh kapag yung
supplier hindi na nagbigay ng supplies kasi hindi nakakapag bayad si
microsemi may ganung case. Down system meron syempre nastock kami
kasi lahat nasa AX na eh so yung nagdown sya dapat yun ang back up ng
kompanya what if mag down kasi hindi naman lagi may internet di ba pero
may back up naman kasi dati wala so ang ginawa ng IT naming gumawa sya
ng PLDT at tsaka Globe pra hindi nagdodown magdown man si PLDT may
globe ka so lagi may back up sa lahat ng ginagawa nyo lagging may back up.
COMPANY B
JIT & ERP

Pag inventory pag sa sparepart gumagamit kame ng Kanban. Yung inventory
naming computerized so sa computer yung oracle an gamin kc ginagamit
make to stock kame hindi make to order, meron kaming make to order pero
meron din kameng make to stock ibigsabihin gumagawa kame para sa stock
namin. Iniistock naming per size basta ganun. Pag ka may umorder kuha lang
ng kuha. Yung ERP naming is para planning, ordering, sales, inventory
(oracle).
EOQ
Sa EOQ nagiistart palang kame niyan pero predictable naman kc yan yung
ano niya yung mga pagbibili ng materials kanban kame. ABC analysis hindi
ako sure parang wala ata.
FIFO
Gamit naming ang FIFO based po sa manufacturing date. Sa stocking po
yung raw materials per number. Kc samin P.O number kung kalian dumating
yung order hanapin mo yung P.O number. Yan yung FIFO. Yan yung P.O
uunahin mo kahit madaming bulk
STOCK REVIEW
Oo daily tapos pag ka kc pagdating ng materials iinput nila sa office tapos
meron kaming weekly, monthly, annually. Computer tapos tally. Ibabanga nila
yun.
Hindi kame gumagamit ng Barcoding.
Best IMP and Challenges
Bawat IMP iba iba sila ng function so mas maganda sama sama sila. Pero
karaniwan yung pinaka basic yung effective. Pero pag ka madamihan na yung
data kailangan mona talaga ng computerized system.
ERP poba yung pinaka the best?
Oo pero kc dimo magagwa yung ERP pagka wala yung ibang maliliit na types
of system parang ganun.
Madame, ano ba, sa ordering pagka nagoorder sila iba iba yun, dimo alam
kung ano yung inoorder nila dahil make to stock kame kailangan may stock
kame tapos pag wala syempre wala kame so yung ibang materials dapat
gagawin isisingit mo yun para mareplenish.
Unreliable suppliers. Oo kc yung ibang materials na iniimport naming pagka

nahold yun, yun yung problem naming.
Sa technology siguro kailangan naming ng REAL TIME kc gumagamit po ng
encode encode siguro barcoding pwede pero hindi pa ngayon. Iniistable pa kc
naming yung process.
COMPANY C (Text Script)
1. Enterprise Resource Planning (ERP)

2. Using consumption or historical usage rate
3. Enterprise Resource Planning (ERP), because it can use traceability as
aging inventory, expiration and inventory management such FIFO or
First-in-first-out inventory.
Question no. 2
1. Economic Order Quantity
a. Using MRP system or Materials Requires Planning system
b. SAP System or System Applications Products is being used for
Materials Requires Planning system. Minimum or maximum ordering
should be set up first.
c. Economic Order Quantity (EOQ) will be required controls upon
ordering.
2. JIT or Just-in-time ordering. Same as MRP however supplier will just
deliver the needed requirement of client.
3. All system report can be modified based from the needed requirements.
Requirements on inventory management should follow below:
A- Color coding per day
B- Date coding
C- Expiration
4. FIFO, by following the standard process of certain requirement under
number 3. FIFO can be compliance to inventory management.
Actually IMP will depend on the availability of companys system

and procedure. It will applied as per their standards or products being
served. Example: chemicals FIFO is best process to be applied why
because it has expiration traceability. JIT example is spare parts with EOQ
required all can be used however check first the product of companys
being served.
For stock review, if IMP system will automatically compute it. This can be
done weekly, monthly and annually or depend on the standard process of
department for their tracking and traceability.
4. FIFO, newly receive products should be first issued to production.

5. System to be used will depend on companys availability. Other big
company uses SAP, AXAPTA, ORACLE etc. all reports are readily
available once system is set up. Small companys cannot afford
IMP/MRP system uses excel spread sheet for tracking.
6. Uses of barcode are for finished goods traceability as output of sales. 10
pax exist scanners, 2D, for easier tracking goods and report purposes.
7. We use SAP system. Can use in HR, Finance, Purchasing, Planning and
Logistics. It limits are based on people transactions or entry. It is
controllable to all areas including reports and proper approvals.
CURRICULUM VITAE
AFUANG, JAN MARTIN DOCTOLERO

6762 ADALLA ST. BRGY. GUADALUPE VIEJO, MAKATI CITY
martinafuang@gmail.com
+639168856569
OBJECTIVES
To work for a dynamic and challenging organization where my skill can be fully utilized
while also providing me opportunities for professional development and growth.
PERSONAL BACKGROUND
Date of Birth : September 7, 1996

Place of Birth : Makati
Age : 20 years old
Sex : Male
Height : 56
Weight : 50 kg.
Civil Status : Single
Nationality : Filipino
Religion : Roman Catholic
Language/Dialects Spoken : English and Tagalog
EDUCATIONAL BACKGROUND
PRIMARY
WEST REMBO ELEMENTARY SCHOOL
WEST REMBO, MAKATI CITY
2003-2006
GUADALUPE VIEJO ELEMENTARY SCHOOL

PROGRESO ST. BRGY. GUADALUPE VIEJO, MAKATI CITY
2006-2009
SECONDARY
GENERAL PIO DEL PILAR NATIONAL HIGH SCHOOL
F. ZOBEL COR. MORONG ST. BRGY. POBLACION, MAKATI CITY
2009-2013
TERTIARY
BACHELOR OF ARTS IN AVIATION LOGISTICS
2013- PRESENT
SKILLS
COMPUTER LITERATE (MSWORD, MSEXCEL, MSPOWERPOINT)

PUBLIC SPEAKING
INTERNSHIP EXPERIENCE
INTERN
SPECIAL PROGRAM FOR THE EMPLOYMENT OF STUDENTS (SPES)
BARANGAY GUADALUPE VIEJO
MAY 2014
SEMINAR AND TRAINING ATTENDED
BARANGAY COUNCIL FOR THE PROTECTION OF CHILDREN

APRIL 2011
REFERENCES
MR. DENNIS B. ALMARIO

BARANGAY CAPTAIN
+639277118880
BARANGAY GUADALUPE VIEJO
DR. RODANTE G. FLORES

DEAN
INSTITUTE OF LIBERAL ARTS AND SCIENCES
I hereby certify that the above information is true and correct to the best of my
knowledge and belief.
AFUANG, JAN MARTIN DOCTOLERO
APPLICANT
CELSO JEDIDIAH RAMOS BONBON

ADDRES Block 37C, Lot 27 Phase 3 F1 Kaunlaran Village
Caloocan City 140o
CELL (+63916) 740-1872
E-MAIL bonboncelso@yahoo.com
PERSONAL INFORMATION
Address : Block 37C, Lot 27, Phase 3 F1, Door 2,
Kaunlaran Village, Caloocan City 1400
Mobile : +639193973976
Email Address : bonboncelso@gmail.com
Nationality : Filipino
Date of Birth : 16th October 1996
Place of Birth : Jose R. Reyes Memorial Medical Centre, Sta. Cruz, Manila
SKILLS
Computer Literate
Basic Computer Troubleshooting and Internet Research Skills
Social Media
Tertiary
BACHELOR OF ARTS IN AVIATION LOGISTICS
Philippine State College of Aeronautics (PhilSCA)
Piccio Garden, Villamor Airbase, Pasay City
2013 Present
Deans Lister: 1st term AY 2013 2014
Deans Lister: 2nd term AY 2014 2015
Deans Lister 3rd term AY 2015 2016
Secondary
4th Year High School Diploma
Macario B. Asistio Sr. High School Unit I (MBASHS I)
Pla pla St. Caloocan City
Graduated 2013
Salutatorian
Best in Science
Best in Mathematics
Primary
Grade 6 Elementary Diploma
Caloocan Bethel Christian School (CBCS)
Caloocan City
Graduated 2009
CREDENTIALS AND ACHIEVEMENTS
Deans Lister, PhilSCA (2013 2016)

Official Delegate, Akbayan Youth 2nd National Congress, Davao City
Salutatorian, MBASHS I Commencement
ORGANISATIONAL BACKGROUND
Akbayan Youth, Brgy. 12, Caloocan City
Supreme Student Government, MBASH I
CHARACTER REFERENCES
Rosalina DV. Nava

High School Teacher
MBASH I
Caloocan City
Contact Number: (0926) 274 - 4806
Maricris Surigao
High School Teacher
MBASH I
Caloocan City
Contact Number: (0932) 879 - 9904
I hereby certify that all of the information stated here is true and correct to the best of
my knowledge and in good faith.
CELSO JEDIDIAH RAMOS BONBON
TO GOD BE ALL THE GLORY

Lara Bless Cabalan Dalida

Blk 38, Lot 12, Ph2, Pinagsama Village, Taguig City
dalidalarabless@gmail.com
09364592407
OBJECTIVE
I am seeking employment with a company

where I can use my talents and skills to grow and
expand the company.
SKILLS AND COMPETENCIES
Basic Computer Skills (MS Word, PowerPoint & Excel)

Photo Editing (Adobe Photoshop)
Video Editing (Adobe Premiere)
Literate in Stenography
Flexible and willing to learn
Tertiary
Bachelor of Arts Degree in Aviation Logistics
PHILIPPINE STATE COLLEGE OF AERONAUTICS INSTITUTE OF LIBERAL
ARTS AND SCIENCES
Piccio Garden, Villamor, Pasay City
(2013 Present)
Honor student
Secondary
High School Diploma
Pres. Diosdado Macapagal High School
Brgy. Katuparan, GHQ, Taguig City
(2009 2013)
Honor Student (1st - 4th year)
Primary
Elementary Diploma
Kapt. Eddie T. Reyes Memorial Elementary School
Ph 2 Pinagsama Village Taguig City
(2003 2009)
9th Honorable Mention
PERSONAL INFORMATION
Address : Blk 38, Lot 12, Ph2, Pinagsama Village, Taguig City
Mobile : 09364592407
Email : dalidalarabless@gmail.com
Age : 20
Gender : Female
Height : 54
Weight : 46 Kg
Date of Birth : November 03, 1996
Place of Birth : Makati City
Religion : Born Again Christian
ACHIEVEMENTS
Honor Student
Best in thesis defense
Corps Commander
Ambassador of Good will in Barangay
CHARACTER REFERENCES
Available upon request
I hereby certify that all of the information stated here is true and correct to the
best of my knowledge and in good faith.

Assessment of The Inventory Management Practices of Select Manufacturing Companies

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Assessment of The Inventory Management Practices of Select Manufacturing Companies

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Republic of the Philippines

PHILIPPINE STATE COLLEGE OF AERONAUTICS

ASSESSMENT OF THE INVENTORY MANAGEMENT PRACTICES

An Undergraduate Thesis Presented to the Faculty of the

In Partial Fulfillment of the Requirements for the Degree of

CELSO JEDIDIAH R. BONBON

Manufacturing is an important sector since it presents an integral

part in the countrys economic development. According to Batungbacal (2011),

long-term employment, revenue and innovation. It creates employment

resulting in reduced poverty. Inventory is the life wire of any manufacturing

organization. Inventory management is a crucial factor to the success or failure

forms of inventory. Inventory management is a system that integrate

information, transportation, material handling, warehousing, control of supplies

and ensuring the security of inventory. Effective Inventory management is an

important factor to the success and growth of organizations (Augustine, 2013).

poor customer satisfaction (Ngumi, 2015). Poor inventory management

practices lead to business failure. Thus effective inventory management

practices must be utilized. Effective inventory management practices are a

this study is to assess the inventory management practices of select

Inventory is a quantity of goods and materials on hand (USLEGAL,

that the fundamental reasons for maintaining inventory is to have the

manufactured products whenever they are demanded for and without it

Various organization have different types of inventory but the most

(Misoi, 2015). According to Esther (2008), raw materials are unprocessed

natural product for manufacturing process, work in progress is an incomplete

Inventory management systems have been concerned with business

competitive for their business operations and one of that is inventory

inventory management is to ensure the continuous production and customer

service levels at minimum cost. Inventory management functions are to carry

maintained to minimized inventory cost (Ethopia, 2010). The goal of inventory

management is to hold inventories at lowest possible cost and to ensure

uninterrupted supplies for the ongoing operations (Kasim et al., 2015).

Inventory management has a great impact in a firm. Effective Inventory

management is an important factor to the success and growth of

organizations (Augustine, 2013). It is a potential driver for enhancing profit

undertaking projects on time (Osei, 2015). According to Osei (2015),

place at the right time.

However, ineffective inventory management is a disadvantage for the

company. According to Augustine (2013), if inventory management is not

maintained properly, the production cannot meet the customers demand

leading to loss of revenue of the firm. Ineffective inventory leads to many

problems such as overproduction, underproduction excessive stocks and

delays in delivery of materials. (Munyao, Omulo, Mwithiga, and Chepkulei,

(Raphella, Nathan & Chitra, 2014).

manage stocks (Njoroge, 2015). Efficient inventory management practices

Order Quantity, Just-In-Time, ABC analysis, First-In-First-Out, Stock Review,

Barcoding and Enterprise Resource Planning.

In any business operations, challenges are inevitable. There are

challenges in the implementation of the inventory management practices.

financial problems, lack of personnel knowledge and inaccessibility of critical

information. Other challenges are quick and highly unpredictable changes in

market conditions and lack of supportive and effective technology. Moreover,

implementation of inventory management practices: lack of commitment by top

management, failure to invest in modern technologies, unreliable suppliers and

of this study is to bridge that gap by assessing the inventory management

practices of the select manufacturing firms.

Economic Order Quantity

The purpose of this study was to assess the inventory management

practices of select manufacturing companies. The conceptual framework

practices was comprised of Economic Order Quantity, Just-In-Time (JIT), ABC

Analysis, First-In-First-Out (FIFO), Barcoding, Stock review and Enterprise

of the select manufacturing companies. To achieve this objective, the following

research questions were formulated.