Inventory Management Practices in Selected Medium-Scale Boutiques in Sta.Rosa, Laguna
INVENTORY MANAGEMENT PRACTICES IN SELECTED MEDIUM-SCALE
BOUTIQUES IN STA. ROSA CITY, LAGUNA
Chapter 1: Introduction and Background of the Study
Introduction
"Inventory" to many small business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. In a literal sense, inventory refers to stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small and medium-scale businesses cannot absorb the types of losses arising from poor inventory management. Unless inventories are controlled, they are unreliable, inefficient and costly.
Retailing is one of the major industries and fastest-growing segments of the Philippine economy today. As one of the nation 's largest employers, the retail industry provides excellent business opportunities for the Filipinos. The entrepreneurs behind these ventures risk their capital, invest their time and make a living by offering consumers something they need or want. This could be attributed to the notion that a trading business is simple to operate and could easily generate cash. Retail business reports the cost assigned to unsold units left on hand as merchandise inventory, the only inventory account that appears in financial statement.
An inventory management is an important concern for managers in all types of business. Firms typically stock hundreds or even thousand of items in inventory, ranging from small thing to large items. Naturally, many of the items a firm carries in inventory relate to the kind of business it engaged in. For these reasons, management is vitally interested in inventory planning and control. Sales and customers may be lost if products ordered are not
BOUTIQUES IN STA. ROSA CITY, LAGUNA
Chapter 1: Introduction and Background of the Study
Introduction
"Inventory" to many small business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. In a literal sense, inventory refers to stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small and medium-scale businesses cannot absorb the types of losses arising from poor inventory management. Unless inventories are controlled, they are unreliable, inefficient and costly.
Retailing is one of the major industries and fastest-growing segments of the Philippine economy today. As one of the nation 's largest employers, the retail industry provides excellent business opportunities for the Filipinos. The entrepreneurs behind these ventures risk their capital, invest their time and make a living by offering consumers something they need or want. This could be attributed to the notion that a trading business is simple to operate and could easily generate cash. Retail business reports the cost assigned to unsold units left on hand as merchandise inventory, the only inventory account that appears in financial statement.
An inventory management is an important concern for managers in all types of business. Firms typically stock hundreds or even thousand of items in inventory, ranging from small thing to large items. Naturally, many of the items a firm carries in inventory relate to the kind of business it engaged in. For these reasons, management is vitally interested in inventory planning and control. Sales and customers may be lost if products ordered are not