Preliminary

COLLEGE OF BUSINESS&ACCOUNTANCY

ACCEPTANCE AND APPROVAL SHEET

This thesis entitled “EFFECTS OF ESTIMATING SALES TO INVENTORY

MANAGEMENT OF CONVENIENCE STORES IN BATANGAS CITY”, prepared and

submitted by RHICA MAY H. DE TORRES, RHEALYN M. BUCAL, KRIZZA MAE R.

DE LEON and RUSSEL BERCASIO, in partial fulfilment of the requirements for the

degree of Bachelor of Science in Accountancy, has been examined and is

recommended for acceptance and approval.

________________________________DORINGER P. CABRERA, CPA, MBA

Adviser

Accepted and approved in partial fulfilment of the requirements for the degree of

Bachelor of Science in Accountancy.

_________________________________LILY MARLENE HERNANDEZ – BOHN

Dean

Thesis Defense Committee:

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Campuses: Hilltop MH del PilarPallocan East Pallocan West Lipa TelephoneNumbers : +63 43 723 1446 980 0041Website:www.ub.edu.ph


ACKNOWLEDGEMENT

The researchers owe gratitude to all those people who have made this thesis

possible. They would like to acknowledge the following individuals who encouraged,

inspired, supported, and assisted them to complete this study.

First of all to Almighty God, for giving the researchers the wisdom to finish the

research;

Dr. Jesus Briones and Mr. Doringer P. Cabrera, to give their insights and inputs

in the preliminary stages of the study and continuous encouragement;

The researchers’ families, relatives, friends for the inspiration, strength and

support spiritually throughout writing the thesis;

Owners and managers of convenience stores in Batangas City, for sharing their

time in answering the questionnaires given;

The Librarians of University of Batangas, who extended their patience in

assisting and providing worthy books and literature; and

Lastly, to anyone who directly or indirectly have lent their support in this study.

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DEDICATION

This Research Paper Is Lovingly

Dedicated To

The Lord Almighty

Our Respective Parents,

Siblings and Relatives

Friends

Without their love and support this project would not

Have been made possible

R. M. H. D. T.

R. M. B.

K. M. R. D. L.

R. B.

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ABSTRACT

Title : EFFECTS OF ESTIMATING SALES TO INVENTORY

MANAGEMENT OF CONVENIENCE STORES IN

BATANGAS CITY

Researchers : Rhica May H. De Torres

Rhealyn M. Bucal

Krizza Mae R. De Leon

RusselBercasio

Type of Document : Unpublished Undergraduate Thesis

Degree : Bachelor of Science in Accountancy and Bachelor of Science in Business Administration Major in

Accounting Management

School : University of BatangasHilltop, Batangas City

Number of Pages : 71+

Date Completed : August 2015

Thesis Adviser : Mr. Doringer P. Cabrera

This study intended to determine the effects of estimating sales to inventory

management of convenience stores in Batangas City

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Specifically, this study sought answers to the following questions:

1. How do convenience stores estimate their sales in terms of:

1.1. Territory;

1.2. Consumer preference, and

1.3. Product life cycle?

2. How do convenience stores manage their inventory in terms of:

2.1. Time and size of order;

2.2. Demand of customers, and

2.3. Procedures adapted by the business?

3. Is there any significant effect of estimating sales to inventory management of

convenience stores in Batangas City?

4. What guidelines on estimating sales may be proposed to utilize the inventory

management of convenience stores in Batangas City?

The researchers applied the descriptive method of research to determine and

analyze the effects of estimating sales to inventory management of convenience stores

in Batangas City. This study covered twenty four (24) convenience stores. In order to

gather the necessary data a self-constructed questionnaire was utilized. The

questionnaire was divided into two parts: (1) profile of the participants and the business

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and (2) questionnaire proper which is composed of information on effects of estimating

sales to inventory management of convenience stores.

The researchers used the percentage distribution for interpreting the profile of the

participants and business and Pearson correlation for determining the hypothesis

formulated is accepted or rejected.

Findings

From the information gathered and analyzed, the study revealed the following

findings:

1. Estimating Sales of Convenience Stores

1.1 Territory. Convenience stores in Batangas City have a moderately extent in

estimating sales in terms of territory. It gained the composite mean of 3.09.

This means that having sufficient sales people, knowing the number of

population, implementing policies in estimating sales, achieving appropriate

balance among customer group and knowing the presence of competitors

are considered in estimating sales in territory.

1.2 Consumer Preference. Based on the data gathered, the estimating sales of

the participants in terms of consumer preference is 3.07 composite mean.

This means that the participants were able to identify or know the prior

demands of customers.

1.3 Product Life Cycle. The estimating sales of product life cycle of convenience

store is moderately extent. It gained the composite mean of 3.48 this means

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comparing last year sales of products, understanding the stages of the

products, determining a good description of products, requiring and

establishing the maturity of the products in the market are considered in the

inventory management of the convenience stores.

2. Inventory Management of Convenience Stores

2.1 Time and Size of Order. Convenience stores in Batangas City have great

extent inventory management in terms of time and size of order. It gained the

composite mean of 3.54. This means that using system to keep track of

inventory, making reasonable estimates of inventory ordering cost, using

well-created units of measuring, updating and controlling of the time and size

of order are considered in the inventory management of convenience stores.

2.2 Demand of customers. Based on the data gathered, the inventory

management of the participants in terms of demand of customers is 3.34

composite mean. This means that the participants were able to set up goals

for service level and make reliable forecast of customer’s demand.

2.3 Procedures adapted by the business. Based on the data gathered, the

inventory management of the participants in terms of procedures adapted by

the business is 3.48 composite mean. This means that the participants are

establishing procedure, providing adequate facilities for handling storage of

inventory, assigning appropriate employee, conducting periodic inventory

cost, and using bar code of technology.

3. Effects of Estimating Sales to Inventory Management

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Based on the data gathered, the effect of estimating sales to inventory

management is on the great extent evidenced by the composite mean of 3.63.

This means that the participants were able to identify the excess/old stock,

ensure enough supply of goods, know when and how much to purchase goods,

help to decrease the cost of handling of goods and maintain logs of inventory

movement into and out of the storerooms.

Conclusions

Based on the information gathered and interpreted, the researchers have

reached the following conclusions.

1. In current economic conditions, sales estimating force a business to look at the

future objectively and can make the difference between just surviving and being

a highly successful business.

2. The convenience stores in Batangas City have moderate level of estimating

sales in terms of territory, consumer preference and product life cycle.

3. The convenience stores in Batangas City have moderate level of managing

inventory in terms of time and size of order, the demand of customers and the

procedures adapted by the business.

4. There is significant effect in the inventory management of convenience stores in

estimating sales. Inventory management measured in terms of territory,

consumer preference and product life cycle.

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5. The null hypothesis was rejected. Thus, the participants had different inventory

management in terms of territory, consumer preference and product life cycle

when estimating sales.

Recommendations

The following are humbly recommended by the researchers from the conclusions

derived in this study:

1. Managers/Owners should conduct an evaluation concerning the basis used in

estimating sales. Such evaluation should focus on how the basis employed helps

in achieving the organization’s profit objectives.

2. Managers/Owners should focus on all inventory level management as there is no

denying that it is a tricky job because so many factors can affect future sales.

3. Managers/Owners should have an accurate estimate and managing prioritize the

territory, consumer preference and product life cycle of businesses because it

has significant part in achieving future objectives.

4. Further researched should be conducted on the premises of this study;

admittedly, such issue is addressed on a case-to-case basis, thus, impairing

comparability. Nevertheless, it is important that a follow up study should be

carried out to ascertain the effects of estimating sales to inventory management

of convenience stores in Batangas City.

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TABLE OF CONTENTS

Page

TITILE PAGE i

ACCEPTANCE AND APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

DEDICATION iv

ABSTRACT v

TABLE OF CONTENTS x

LIST OF TABLES xii

LIST OF FIGURES

CHAPTER 1. PROBLEM AND ITS BACKGROUNDIntroduction 1Theoretical and Conceptual Framework 3Statement of the Problem 6Hypothesis 7Assumptions of the Study 7Scope, Delimitation and Limitation 7Significance of the Study 9Definition of Terms 10

CHAPTER 2. REVIEW OF RELATED LITERATURE AND STUDIES 12

CHAPTER 3. METHODOLOGYResearch Design 27Participants of the Study 28Data Gathering Instrument 33Data Gathering Procedures 34Statistical Treatment of Data 35

CHAPTER 4. PRESENTATION, ANALYSIS AND INTERPRETATIONOF DATA

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CHAPTER 5. SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONSSummaryFindingsConclusionsRecommendations

BIBLIOGRAPHY

APPENDICES

CURRICULUM VITAE

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LIST OF TABLES

Table Page

1 Profile of the Participants

2 Profile of the Business

3 Weighted Mean and Verbal Interpretation of Territory and itsEffect on Estimating Sales of Convenience Stores

4 Weighted Mean and Verbal Interpretation of Consumer Preference and its Effect on Estimating Sales of

Convenience Stores

5 Weighted Mean and Verbal Interpretation of Product Life Cycle and its Effect on Estimating Sales of Convenience Stores

6 Weighted Mean and Verbal Interpretation of Time and size of order and its Effect on Inventory Management of Convenience Stores

7 Weighted Mean and Verbal Interpretation of Demand of customersand its Effect on Inventory Management of Convenience Stores

8 Weighted Mean and Verbal Interpretation of Procedures adapted by the business of order and its Effect on Inventory Management of Convenience Stores

9 Pearson Correlation and Verbal Interpretation of the Effect ofEstimating Sales to Inventory Management in terms of Time

and Size of Order

10 Pearson Correlation and Verbal Interpretation of the Effect ofEstimating Sales to Inventory Management in terms of

Demand of Customers

11 Pearson Correlation and Verbal Interpretation of the Effect of Estimating Sales to Inventory Management in terms of Procedures adapted by Business

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LIST OF FIGURES

Figure Page

1 Participants of the study

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LIST OF APPENDICES

Appendix Page

A Letter of Inquiry

B Letter of Request

C Questionnaire

D List of Participants

E Curriculum Vitae

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Documents

Preliminary