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ACLC College of Butuan City
HDS Building, 999 J.C. Aquino Avenue, Butuan City
CHAPTER IV
how frequent one is practiced by Mom’s Finest Buffet Palace’s management. The
questions answered by the respondents were all related to the different areas of the
study which are; inventory planning, inventory ordering, and inventory monitoring.
1. Inventory Planning
The table below shows the result of the evaluation on the Inventory
The result shows that the evaluation of the inventory planning practices of
Mom’s Finest Buffet Palace has an average weighted mean of 2.16 with a verbal
business rarely practiced planning because their basis on planning when the order is
whenever and wherever required by stocking adequate number and kind of stocks.
They have to meet the set budget and decide upon what to order, how much to order,
and when to order so that products are available on time and at optimum cost.
The rating statement, “Determines what ingredients to purchase” got the highest
weighted mean of 3.25 with a verbal description of Often. The result denotes that
Mom’s Finest Buffet management determines most of time what kind of ingredients is
Based on the idea of Avery (2016), planning ahead of time on what to order is very
important in the inventory levels. A planner needs to think about their inventory across
time and its essential to effectively managing inventory levels. Also, to have enough
inventories on hand at any given time to support planned sales until the next delivery
arrives.
The rating statements, “Reviews sales reports and ingredients usage before
determining and ordering the ingredients” both got the lowest weighted mean of
1.75 with a verbal description of Never. The result shows that before purchasing
process the management of Mom’s Buffet never practices reviewing of sales reports
and monitoring usage of ingredients. The management also does not have policies
and procedures that they follow in determining the quantity of ingredients needed to
be purchased. This is in connection with the manager’s claim that when planning to
purchase they base every decision on their own personal perception and judgment,
According to Izzard (2017) there are various ways to keep track of materials in the
recording store balances after every receipt and issue to facilitate regular checking
and to prevent closing down for stocktaking. Segarra (2019) says that the importance
performance of their sales team, plan effective sales strategies, decide on a sales
forecasting process and most importantly, maintain or reduce the length of the sales
cycle.
manage the different products in their facilities. While standard policies and
procedures exist for inventory management, owners and managers have some
2. Inventory Ordering
The table below shows the result of the evaluation on the Inventory
purchasing
ingredients.
1.2 Observe 0 2 3 3 8 1.88 Sometimes
quantity standard
in purchasing
ingredients.
1.3 Purchase 4 3 1 0 8 3.38 Always
ingredients from
regular supplier.
1.4 Issues 0 0 4 4 8 1.5 Never
purchase order
(P.O.) when
ordering
ingredients.
2.00 Sometimes
Average
The result on the evaluation of the second area of inventory management practices:
inventory ordering, shows that the average weighted mean is 2.00 with a verbal
involved in the ordering or purchasing process were rarely done by Mom’s Finest
Buffet’s management.
This was proved by Balle (2017) that evaluating the quantity of items the store
might buy is one of the first steps of the inventory ordering and purchasing process.
This was also supported with the idea of Human (2016) which states that a review of
stock-outs and items with excess inventory should be done to place the best possible
The rating statement which got the highest weighted mean of 3.38 was the
verbal description Always. The result signifies that when the management of Mom’s
Finest Buffet does purchasing they have a supplier where they regularly acquire their
ingredients from. According to the manager, they have regular suppliers of ingredients
priced supplier is vital to the success of a business. It pays to invest time in building
good relationships with key suppliers. If a business owner can save money or improve
the quality of the goods or services it can buy from suppliers, a business stands to
gain.
lowest weighted mean which was 1.25 with a verbal description of Never. The result
denotes that when purchasing, Mom’s Finest Buffet does not follow any set schedules.
According to the manager, they only do purchasing immediately after knowing that
frequent deliveries and are usually backed by a purchase contract. All requirements
for the same item, buy-from business partner, ship-from business partner, purchase
office, and warehouse are stored in one schedule. Purchase schedules are used
instead of standard purchase orders in cases where full visibility and time phasing of
3. Inventory Monitoring
The table below shows the result of the evaluation on the Inventory
Total Verbal
Always Often Sometimes Never Weighted
Statement Number of Description
4 3 2 1 Mean
Respondents
1.1 Records every 0 0 4 4 8 1.5 Never
in-coming and out-
going ingredient.
1.2 Consume old 0 0 1 7 8 1.13 Never
stock of ingredients
and those with
earlier best before
dates before
consuming new
stock of
ingredients.
1.3 Conduct 0 0 7 1 8 1.88 Sometimes
physical counting
on the ingredients
available in the
shelf regularly.
1.4 Store the 0 6 2 0 8 2.75 Often
ingredients on
separate
containers.
Average 1.82 Sometimes
practices which is the inventory monitoring shows an average weighted mean of 1.82
management.
According to Marx (2018) inventory monitoring is the first thing that every kind
of business should think of. Inventory monitoring involves maintaining the right balance
of stocks in any business. Having not enough stocks available may drive customers
to go to another store and having excess inventory not only takes up space and ties
up the capital of the business but it can also trigger profit losses when a product
the highest weighted mean which was 2.75 with a verbal description of Often. The
result shows that the management of Mom’s separates each item of ingredient in
slow-moving aids to have a right number of stocks and to ensure quick handling. In
dealing with the slow-moving inventory, the business must know whether the products
are fast moving or slow moving. Inventory should generally be used within a span of
90-120 days. If there are stocks that are not used during that specific span of time, it is
the time to get rid of it. Having an old and excess inventory is a cost for every business
(Thomas, 2016).
The rating statement, “Consume old stock of ingredients and those with
earlier best before dates before consuming new stock of ingredients.” got the
lowest weighted mean which was 1.13 with a verbal description of Never. The result
shows that the management of Mom’s Finest Buffet Palace disregards the dates of
purchased items when using them. The manager claims that when ingredients are
transferred to the kitchen they do not take regard on their dates but randomly picks up
those ingredients needed for preparation regardless of its expiry dates or the length of
order as they were purchased. The First In, First out (FIFO) Method is used to improve
this method since items sitting around for too long might become damaged, or
CHAPTER V
Summary
Table 4. Overall rating on the Inventory Management Practices of Mom’s Finest Buffet Palace
The overall result shows that the inventory management practices of Mom’s Finest
Buffet fall under the verbal description of Sometimes. This means that the practices
involved in inventory planning, inventory ordering, and inventory monitoring were rarely
The area inventory planning got an average weighted mean of 2.16 denoting that
that practices involved in this area was rarely implemented and was followed
occasionally. The management of Mom’s does not have enough knowledge on how to
plan inventories. When planning to purchase, the management does not have proper
policies and procedures that they follow in order to have a better idea of the quantity
needed to be purchased.
In inventory ordering, the average weighted mean is 2.00 signifying that the
practices involving this process were rarely implemented and followed. It reveals that
Mom’s Finest Buffet does not follow a schedule in purchasing ingredients, does not
observe quantity standard in purchasing, and does not issue purchase order when
ordering ingredients.
In the inventory monitoring, the average weighted mean is 1.82 signifying that in
terms of using the FIFO method the management rarely or does not implement it. The
management also does not record its incoming and out-going inventories.
Conclusion
With the evaluation and assessment conducted, the researchers conclude that the
management of Mom’s Finest Buffet Palace does not have proper knowledge in terms of
managing of inventories. The practices that the management implements and follows
were not based on the proper methods of handling inventories such as not recording the
wastages and purchasing ingredients in bulks. The management failed to follow and
Recommendation
Based on the results of the study, the researchers would like to recommend the
following:
1. The management should not purchase from their suppliers if they still have a
2. The management should have a mission & vision statement, policies, and
procedures.
3. The management must adapt First in, First Out (FIFO) method of inventory.
management.
Based on the result of the survey conducted by the researchers, it points out that
the Management should improve the three (3) areas of Inventory management of Mom’s
Finest Buffet Palace. Through the results, the researchers came up with a detailed plan
of action for the recommendations shown below.
Person
Recommendation Objective Activities Budget Time Frame
involved
The management To avoid Conduct Manager, N/A 1 day
should not overstocki physical employees,
purchase from their ng of counting and suppliers
suppliers if they still ingredient weekly or
have a lot of stock s that monthly.
left. leads to
spoilage.
The management To know Conduct Owners, N/A 1 day
should have a the meetings Manager and
mission & vision business and gather employees
statement, policies, goals and opinions
and procedures. what they from
want to employees.
achieve in
the future.
The management To Keep the Manager and N/A 1 day
must adapt First in, minimize new items Employees
First Out (FIFO) overstocki under the
ng and old ones
method of spoilage
inventory. of
ingredient
s
The management To Hire an Owners, P20,000/se 1 week
should conduct improve expert in manager, and minar
trainings and the inventory employees
seminars about inventory manageme
inventory managem nt.
management. ent Let
practices employees
of Mom’s undergo
Finest trainings
Buffet and
Palace seminars
employee and apply
s. their
learning in
the actual
operations.
The management To be able List the Manager and N/A 1 day
should record to identify purchased employee
every in-coming the inventory,
and out-going inventory the used
inventory. levels for a inventory,
certain and the
item need spoiled
to be inventory.
purchased