5th Draft

COLLEGE OF BUSINESS
&ACCOUNTANCY
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Most businesses nowadays predict their sales for future period in order to have a
preparation for the actual sales. It is known as estimating sales which is a method
considered being very valuable management tool. Businesses are doing this to provide
interrupted production, sales and/or customer-services
Estimating sales is a prediction of a business's unit and sales for some future
period of time, up to several years or more. These forecasts are generally based
primarily on recent sales trends, competitive developments, and economic trends in the
industry, region, and/or nation in which the organization conducts business. Inventory
management is primarily about specifying the size and placement of stocked goods. It is
required at different locations within a facility or within multiple locations of a supply
network to protect the regular and planned course of production against the random
disturbance of running out of materials or goods.
Inventory plays an important role in the operation of convenience store because
it is the lifeblood of the business operations of merchandising company for it shows the
financial activities of a business for a limited period of time. It helps the manager/owner
to analyze the flow of business operation whether it is manage effectively and efficiently
or if the business is earning or losing. A thorough management of inventory is necessary
to avoid possibility of shortages that would greatly affect the operation of the business.
1
Campuses: Hilltop MH del Pilar Pallocan East Pallocan West Lipa
TelephoneNumbers : +63 43 723 1446 980 0041
Website:www.ub.edu.ph
COLLEGE OF BUSINESS
&ACCOUNTANCY
There are large numbers of convenience stores established in Batangas City
which are having an issue about monitoring their sales and inventory. This problem
usually causes two things: out-of-stocks and overstocks. Out-of-stocks means that
products are not available for sale due to high sales are not expected by the business,
while overstocks means that products are excessive and are not usually being bought
by the consumers. These two problems are caused by poor planning of estimating sales
and inappropriate managing of inventory. It is a challenge that the convenience stores
have to face this undesirable situation. Convenience stores needs to have a good
system on how they should estimate their sales and how to manage their inventory in
order to have a well business management.
With the information above, the researchers were motivated to focus on this
study of the effects of estimating sales to inventory management for the reason that it
will help any business improve its forecasting performance and inventory management.
The researchers believe that by conducting the study, they would be able to discuss the
actual effects of the stated variables. For the future researchers, this will serve as a
reference and guide for their future studies and those who want to engage in this kind of
business.
Conceptual Framework
2
COLLEGE OF BUSINESS
&ACCOUNTANCY
This study took the concept of Hurlbut (2012) about sales forecasting and
inventory management for independent retailers. It says that everything starts with a
good solid sales forecast. From there, a business can plan how much inventory well
need to have to support that plan. Business can also determine accurately how much
inventory they need to buy. Effective inventory management begins with a carefully
developed sales forecast. Only then can inventory levels be planned, and merchandise
receipts scheduled throughout the season. This is the key to eliminating both out-ofstocks and over-stocks. This study likes to express the effects of estimating sales to
inventory management of convenience stores in Batangas City.
Base on the theory of Hurlbut, estimating sales plays a vital role on inventory
management while in the present study it points out on how estimating sales affect
inventory management on convenience stores in Batangas City. This theory gives
additional information on how a business should give emphasis on estimating theirs
sales and how it would be effective on managing inventory on retailers. This will help in
order to run the business efficiently.
Through estimating sales a business can predict their future sales that would
help them in managing their inventory. The estimates must be reliable and effective in
order to avoid overstocking and/or out-of-stock of inventories. It also highlights that outof-stocks resulting from unexpectedly high sales, and overstocks from unexpectedly low
sales but they are really the flip side of the same problem. Both result from inadequate
planning and sales forecasting. A proper inventory management will serve as guide in
controlling the number of stocks to be sold in small businesses.
3
COLLEGE OF BUSINESS
&ACCOUNTANCY
This study wanted to know if estimating sales in terms of territory, consumer
preference, and product life cycle is related to inventory management in terms of time
and size of order; demand of customers, and procedures adapted by the business. The
concepts of this study are presented in the conceptual paradigm (Figure 1).
Estimating
terms of:
sales
in
Territory
Consumer
preference
Product life cycle
Inventory management
in terms of:
Time and size of
order
Demand
of
customers
Procedures adapted
by the business
Input
Gathering data
through
questionnaire
Statistical test
and analysis of
data
Presentation of
Findings
Process
Effects of estimating
sales to inventory
management
of
Convenience Stores
Output
Figure 1
Conceptual Framework on Estimating Sales and it Effects to Inventory
Management of Convenience stores
In this study, the researchers used the IPO or Input-Process-Output system
approach. The paradigm shows a summary on how the researchers will conduct this
4
COLLEGE OF BUSINESS
&ACCOUNTANCY
study. On the first box with the label of input are estimating sales in terms of territory,
consumer preference, and product life cycle. These factors are important to consider in
doing estimating sales. According to Anastacio et. al., 2010, there are following methods
may be done in estimating or forecasting sales. Sales trend Analysis which product life
cycle is used in making the forecast and Sales Force Composite Method which each
salesman estimates the sales in his particular territory.
And also, according to Metcalf (2013), Sales forecast is the best tool to get a
good estimate of the demand for the products. Sales team is the front line for the
business and best positioned to gather information about anticipated demand of
consumers. Good forecasting requires an understanding of your buyers behavior. The
sales process, only moves forward when the buyer takes action, so it is incumbent on
the sales organization to get very clear on how your buyer is making the decision
(www.forbes.com/sites/scottedinger/2013/06/03/Four-principles-for-great-salesforecasts/).
One of the critical elements of Inventory system is good policies and procedures
adapted by people. You must make sure that these people know what to do with items
that are received, taken from stock, reserved for future use, required for production, or
who is responsible for making certain transactions.
This is followed by how to manage inventory in terms of time and size of order;
demand of customers, and procedures adapted by the business which are factors that
are considered in managing inventory. Inventory should be taken with utmost care and
5
COLLEGE OF BUSINESS
&ACCOUNTANCY
must address two major concerns which are timing of order and size of order. To
effectively manage the inventory one must have a reliable forecast of demand
(Anastacio et. al., 2010).
The researchers presumed the relationship of the variables so as to determine
how they play their role in an operation of a business like convenience store. The
researchers believe that estimating sales has a big role in business operation, most of
all in managing inventory. Those tools are included for the progress of the study. It will
serve as the basis to know the effects of estimating sales to inventory management.
The second box labeled as process indicates how the researchers will conduct the data
gathering through survey and questionnaire followed by statistical test and analysis of
data. The third box labeled as an output provides for the effect of estimating sales to
inventory management. According to Moorman et al., 2006, there is a direct correlation
between sales and inventory. Inventory is the number of units, and the value of those
units, that are available for sale or manufacture. Theoretically, the more units a business
has on hand to sell or manufacture, the more it should sell. In this way, inventory affects
sales and consequently inventory levels are controlled by sales.
Statement of the Problem
6
COLLEGE OF BUSINESS
&ACCOUNTANCY
The purpose of this study was to determine the effect of estimating sales to
inventory management of convenience stores in Batangas City. Specifically, it seeks to
answer 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?
Hypothesis
There is no significant effect of estimating sales to inventory management of
convenience stores in Batangas City.
7
COLLEGE OF BUSINESS
&ACCOUNTANCY
Assumptions of the study
The researchers made the following assumptions in conducting this study:
1. That the researchers could finish the thesis on time;
2. That the information gathered by the researcher would be useful, valid and reliable;
3. That the managers of convenience stores would be cooperative and trustworthy in
answering the questionnaire.
Scope, Delimitation and Limitation of the Study

The coverage of this study is the effects of estimating sales to inventory
management of convenience stores in Batangas City and the methods of estimating
sales they used in terms of territory, consumer preference, and product life cycle.It also
included how convenience stores manage their inventory in terms of time and size of
order, demand of customers, and procedures adapted by the business. The study also
considers the personal information of a participants and profile of the business such as
type of business ownership and length of business operation.
The researchers delimited this research to convenience stores that does not
estimate their sales. The participants included only the convenience stores in Batangas
City. It also delimited to small sari-sari stores. The study also delimited to other scope of
inventory management concerning the fine lines between replenishment lead time,
carrying costs of inventory, asset management, and inventory visibility, and physical
inventory, available physical space for inventory, replenishment, returns and defective
goods. The study did not consider the factors affecting the profitability of the business.
8
COLLEGE OF BUSINESS
&ACCOUNTANCY
The researcher set boundary to focus more on their subject considering the availability
of time and resources.
The results and findings of the study were based on the information and facts
gathered by the researchers from all the participants responses on the questionnaire
that was used. Although the research was carefully prepared, the researchers are still
aware of its limitations. This research were limited from the response made by the 24
participants of the total 35 population as obtained from the list provided by Business
Permit and Licensing Office (BPLO). The researchers have that the desire of including
the total population; however some of them have been closed already. And also the
researchers had no direct control over the participants, there always the possibility of
erroneous data gathered through questionnaire.
Significance of the Study

This research study is about the effects of estimating sales to inventory
management of convenience stores in Batangas City. This study will give information
about methods in estimating sales and how these affect the inventory management.
The researchers believe that this study is very important to the following:
Owners and Managers of the convenience stores and other related businesses
could make use the study conducted as a guide for them to developed sales forecast.
And also it avoids the problem regarding inventory in terms of out- of- stocks and
overstocks.
9
COLLEGE OF BUSINESS
&ACCOUNTANCY
This study would give awareness to the businessmen or future businessmen of
the importance of estimating sales to obtain a good operation of their business.
Therefore, the findings have a great help in operating their business.
To the students taking up business courses, it would give additional information
for their future profession.
And finally, for the future researchers, the findings will serve as a reference and
guide for their future studies.
Definition of Terms
Terms here are conceptually and operationally defined for better understanding
of the readers.
Consumer Preference. This is a desire to buy the product and is convinced that
the purchase would be wise. (Diola et.al.2009)
Convenience store. In this study are stores that stock a range of everyday items
such as groceries, snack foods, toiletries and others. These are stores which carry a
limited line of high turn-over convenience goods and are usually open over long hours,
seven days a week. (Diola et.al.2009)
Estimating Sales. In this study it refers to the process of predicting businesss
sales in the future.
Inventory. Stocks of goods intended to sale. (Diola et.al.2009)
Inventory management. This refers to the practice of planning, controlling
inventory so that it contributes to business profitability, pricing decisions and strategies,
10
COLLEGE OF BUSINESS
&ACCOUNTANCY
either by reducing cost of goods sold or by increasing sales (Liwag et.al.2003). In this
study, this term refers to managing of finished goods for sale.
Inventory Valuation. This is a process of measuring cost of inventories. (Valix
et.al.2013)
Product life cycle. A graphic representation of a products sales history from its
birth, or market beginning, to its death, or withdrawal from the market.(Diola et.al.2009)
Sales. In this study it refers to the exchange of goods or services for an amount
of money or its equivalent.
Stocks. In this study, it refers to the supply of goods available for sale in a store.
Territory. In this study it is an area of land that belongs to or is controlled by a
government.
11
COLLEGE OF BUSINESS
&ACCOUNTANCY
CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents the review of related literature and studies in an attempt
not only to clarify but also qualify certain ideas in the present study. The researchers
gathered similar or related viewpoints from books and unpublished thesis and some
articles in the internet.
How to Estimate Sales

The sales forecast is usually the primary planning document for a business. Even
if the general economy is robust, an organization needs a promising sale forecast
before it can be aggressive about capitalizing on new opportunities. Strategic planners
themselves may not be involved in making sales forecast, but to develop master plans,
they rely on forecasts that the marketing unit makes. (Dubrin, 2006)
A sales forecast is an estimate of the amount or unit sales for a specified future
period under a proposed marketing plan. It may be for a specified product or for the
entire product line or it can be for market as a whole or any portion of it. Once the sales
forecast prepared, it becomes the key controlling factor in all operational planning
throughout the company. The forecast is the basis of sound budgeting . (Gupta, 2013)
Forecasting is important to practically all marketing organizations. Without a short
term forecast, sales managers would not have a logical basis for assigning workloads or
deciding where to concentrate the sales effort without a long- term forecast, sales
12
COLLEGE OF BUSINESS
&ACCOUNTANCY
managers would not know how many salespeople the firm will need or how many
should be promoted to a sales management position. The mere fact that a forecast has
to be done admits that uncertainty crisis in the process. In fact, and every forecast can
be only so accurate.
In many industries, managers still determine sales forecast by comparing this
years sales with last years sales at the same time period. But consider how much
information is not taken into account with this approach. Forecasting is not only
important, but it can be complex too.
Estimating for a new product is the most difficult type of forecast since no
historical sales data available. It is particularly difficult when the product is very different
from the companys current product mix. A popular forecasting method for consumer
packaged goods products is a counting method called test marketing. By carefully
selecting a few representative market areas, marketing managers can observe the
impact on sales of various combinations of the marketing mix and use measures of
market share in these small markets to forecast the total market. (Hair et. al., 2010)
Even for small businesses, an accurate sales forecast is an important part of
business planning, as it gives you what you need to manage expenses and measure
profit and growth. If your forecast is very far off from actual sales, you could find yourself
with much more inventory and staff than you needed to do business. Don't let
forecasting intimidate you; however, as any business leader will tell you that at best, it is
an educated guess.
13
COLLEGE OF BUSINESS
&ACCOUNTANCY
There are steps on how to estimate sales. First, analyze your historic sales data.
Look especially to seasonal trends as well as year-on-year growth. If you have a startup company or new product with no historic sales data, look to competitors or other like
businesses in the area, trade associations or even your local Chamber of Commerce for
guidance. Second, involve your marketing and sales teams in the forecasting process,
as they are in the best position to inform you about current consumer trends and
purchasing behaviours. Third, define your target market. Also, take projected
demographic and economic growth in your market into consideration. Fourth, put
together all of the information you have gathered and estimate what your sales will be
for each month for one year, as well as an annual figure for years 2 and 3. Professional
business planner Tim Berry recommends that you make projections at the unit level,
whatever a unit is for your business. If your business is a law firm, a unit would be one
hour of attorney's fees, or if you own a car service, a unit would be a client ride. If you
sell multiple products or services, forecast each of them individually. Fifth, vet your sales
forecast against the supply chain. This step is fairly easy for some businesses, such as
restaurants, as the number of tables and seats is the limiting factor for sales. If you
manufacture goods or purchase them from a wholesaler, make sure that they can
sufficiently supply enough goods to meet your forecast. And lastly, determine your cost
of goods sold to ensure that you will have the funds to sustain projected growth. Include
manufacturing, sales, marketing and any other fixed costs associated with selling your
products.(http://smallbusiness.chron.com/estimate-accurate-sales-projections
13704.html)
14
COLLEGE OF BUSINESS
&ACCOUNTANCY
Some other businesses used sales forecasting instead of estimating sales. Your
sales forecast is the backbone of your business plan. People measure a business and
its growth by sales, and your sales forecast sets the standard for expenses, profits and
growth.
When it comes to forecasting sales, don't fall for the trap that says forecasting
takes training, mathematics or advanced degrees. Forecasting is mainly educated
guessing. So don't expect to get it perfect; just make it reasonable. There's no business
owner who isn't qualified to forecast sales--you don't need a business degree or
accountant's certification. What you need is common sense, research of the factors, and
motivation to make an educated guess.
Your sales forecast in a business plan should show sales by month for the next
12 months--at least--and then by year for the following two to five years. Three years,
total, is generally enough for most business plans.
If you have more than one line of sales, show each line of sales separately and
add them up. If you have more than 10 or so lines of sales, summarize them and
consolidate. Remember, this is business planning, not accounting, so it has to be
reasonable, but it doesn't need too much detail. Here are some tips to get you started:
Develop a unit sales projection. Where you can, start by forecasting unit sales
per month. Not all businesses sell by units, but most do, and it's easier to forecast by
breaking things down into their component parts. Product-oriented businesses obviously
15
COLLEGE OF BUSINESS
&ACCOUNTANCY
sell in units, but so do a lot of service businesses. For example, accountants and
attorneys sell hours, taxis sell rides, and restaurants sell meals.
Use past data if you have it. Whenever you have past sales data, your best
forecasting aid is the most recent past. There are some statistical analysis techniques
that take past data and project it forward into the future. You can get just about the
same results by projecting your two most recent years of sales by month on a line chart
and then visually tracking it forward along the same line. Statistical tools are a nice
addition, but they're rarely as valuable in a business plan as human common sense,
particularly if it's guided by analysis.
Use factors for a new product. Having a new product is no excuse for not having
a sales forecast. Of course you don't know what's going to happen, but that's no excuse
for not drafting a sales projection. Nobody who plans a new product knows the future-you simply make educated guesses. So break it down by finding important decision
factors or components of sales. If you have a completely new product with no history,
find an existing product to use as a guide. For example, if you have the next great
computer game, base your forecast on sales of a similar computer game. If you have a
new auto accessory, look at sales of other auto accessories. Analysts projected sales of
fax machines before they were released to the market by looking at typewriters and
copiers.
Break the purchase down into factors. For example, you can forecast sales in a
restaurant by looking at a reasonable number of tables occupied at different hours of
the day and then multiplying the percent of tables occupied by the average estimated
16
COLLEGE OF BUSINESS
&ACCOUNTANCY
revenue per table. Some people project sales in certain kinds of retail businesses by
investigating the average sales per square foot in similar businesses.
Be sure to project prices. The next step is prices. You've projected unit sales
monthly for 12 months and then annually, so you must also project your prices. Think of
this as a simple spreadsheet that adds the units of different sales items in one section,
then sets the estimated prices in a second section. A third section then multiplies units
times price to calculate sales. The math is simple--the hard part is making that
estimated guess of unit sales.
A fourth section of your projected prices will set the average costs per unit. You
want to set costs because a lot of financial analysis focuses on gross margin, which is
sales less cost of sales. For financial reasons, cost of sales, also known as costs of
goods sold and direct costs, are different from the other expenses that come out of
profits.
The cost of sales isn't what you pay salespeople or for advertising. It's the
amount you pay to buy what you sell. This is usually easy to understand. In any retail
store, for example, the cost of goods sold is what the store pays for the products it sells.
In service businesses, the costs of sales can be less obvious, but it can still be figured
out.
Finally, in a fifth and final section, you multiply unit sales times average cost per
unit to calculate your cost of sales. This gives you a sales forecast that you can use for
the rest of your financial projections. The first place you'll use it is at the beginning of
your profit and loss statement, which normally starts with sales and cost of sales.
17
COLLEGE OF BUSINESS
&ACCOUNTANCY
Of course, not all businesses fit easily into the units sales model. Some business
plans will have sales forecasts that project dollar sales only, by line of sales, and then
direct costs, by other factors. For example, a taxi business might simply estimate total
fares as its sales forecast and gasoline, maintenance and other items as its cost of
sales. A graphic artist might stick with the simple dollar-value sales forecast and project
cost of sales as photocopies, color proofs, etc. In the end, it's always your plan, so you
have
to
make
the
decisions
that
are
best
for
you.
(http://www.entrepreneur.com/article/77674)
The study conducted by Recinto et. al. (2000) entitled The effects of sales
budget in establishing selling prices of drugstores in Lipa City found out that unit price
approach was the common approach of sales budgeting. The use of unit price approach
will plan first the unit to be sold and the unit sales price for each product. This approach
will serve as a check if unit sales price for each product is matching with the unit to be
sold of each product.
There are following methods may be done in estimating or forecasting sales.
These are Sales Trend Analysis, under this method the product life cycle is used in
making the forecast. In using this, it is essential that the company estimate what part of
the life cycle is the product; Sales Force Composite Method, under this method, each
salesman estimates the sales in his particular territory; Executive Opinion Method under
this method, the views of a number of top executive are culled to arrive at a sales
estimate. Industry Trend Analysis Method, under this method, the relationship between
18
COLLEGE OF BUSINESS
&ACCOUNTANCY
expected industry sales and the company sales in terms of market share determined;
Correlation Analysis Method, this is a more scientific means of forecasting sales by
using regression analysis; and Multiple Approach Method, this method uses a
combination of the various methods discussed. (Anastacio et. al., 2010)
Managing Inventory
Inventory management is not glamorous, but it can make difference between
success and failure for a small firm. The larger the inventory investment, the more vital
proper inventory management is. Inventory management is particularly important in
small retail or wholesale firms, as inventory typically represents a major financial
investment by these firms. Achieving the general objective of inventory management
requires pursuing more specific sub goals of inventory control of ensuring continuous
operations, maximizing sales, protecting assets, and minimizing inventory investment.
Protecting inventory against theft, shrinkage and deterioration and minimizing cost
likewise contribute to operational efficiency and business profits (Longenecker et. al.,
2006)
Inventory management permeates decision-making in countless firms and has
been extensively studied in the academic and corporate spheres. The key questions
usually influenced by a variety of circumstances which inventory management
seeks to answer are: when to order, how much to order and how much stock to keep
as safety stock. I Inventory management involve a set of decisions that aim at
matching existing demand with the supply of products and materials over space and
19
COLLEGE OF BUSINESS
&ACCOUNTANCY
time in order to achieve specified cost and service level objectives, observing
product, operation, and demand characteristics. (Wanke, 2014)
Inventory management is defined as policies, procedures and techniques
employed in maintaining the optimum number or amount of each inventory item. The
objective of inventory management is to provide uninterrupted production, sales,
and/or customer-service levels at the minimum cost. Since for merchandising firms,
inventory is the largest item in the current assets category, inventory problems can
and does contribute to losses or even business failures. (Maharaj, 2012)
Maintaining the proper level of inventory is one of the operation managers most
important tasks. Keeping too much inventory in stock means a business is spending too
much on holding costs. Holding too inventory may prevent a company from filling
orders. Too much inventory of company appears to be holding too much inventory given
its limited warehouse space. It needs to reduce inventory levels or obtain more storage
space. Too little inventory of company is losing money because it has run out of
merchandise to sell. It needed to keep larger stocks of inventory on hand. The right
amount of inventory, the manager has made sure that inventories of raw materials are
sufficient. (Bryars, 2006)
Inventory management has two basic goals. The first is to avoid running out of
stock and angering and dissatisfying customers. Consequently, this goal seeks to
increase inventory levels to a safe level that wont risk stock outs. The second is to
efficiently reduce inventory levels and costs as much as possible without impairing daily
20
COLLEGE OF BUSINESS
&ACCOUNTANCY
operations. Thus, this goal seeks a minimum level of inventory. The following inventory
management techniques- economic order quantity (EOQ), just-in-time inventory (JIT),
and, materials requirement planning (MRP) - are different ways of balancing these
competing goals. (Williams, 2007)
Managers of manufacturing and sales organization face the problems of how
much inventory to keep on hand. If a firm maintains a large inventory, goods can be
made quickly, customers can make immediate purchases, or orders can be shipped
rapidly. However, stocking goods is expensive. The goods themselves are costly, and
the money tied up in inventory cannot be invested elsewhere. Three decision making
techniques used as manage inventory and control production: the economic order
quantity (EOQ), the just-in-time (JIT) system, and brief mention of LIFO versus FIFO.
(Dubrin, 2006)
To effectively manage the inventory, it is important to have a system to keep tract
of the inventory on hand and on order, a reliable forecast of demand, Knowledge of lead
time Reasonable estimates of inventory holding cost, ordering cost and shortage cost
and classification system for inventory items.
The study conducted by Candava et. al., (2002) entitled Inventory System
Applied by Selected Shopping Centers in Batangas City found out that the use of Bar
Code Technology/Swiping was a very effective solution to minimize problems in physical
counting.
The study conducted by Marasigan et. al., (2011) entitled The Effects of
Inventory Management Technique to the Pricing Strategies of the owners of Grocery
21
COLLEGE OF BUSINESS
&ACCOUNTANCY
Stores in Batangas City found out that most of the owners employ their inventory
management technique by means of ABC inventory analysis which is focused in the
managerial attention especially to the firms item that is quickly sold by their customers.
Also the concept of this system is easy to understand and easy to implement as the
only way to employ it is by paying a special attention to the most important items.
The study conducted by Maulion et. al., (2004) entitled Control Procedures on
Errors and Irregularities in Inventory Management employed by Feed Mill Companies in
Lipa City discuss the control procedures employed by feed mill companies to prevent
errors and irregularities in inventory management. The previous researcher found out
that inventory is one of the largest assets in a company; necessary control procedures
should be applied in its management. And also they found out that the use of material
requisition form is the major control procedure applied by feed mill companies under the
objective of transaction authorization.
Estimating Sales in Relation with Inventory Management

According to Hurlbut (2012), the problem usually boils down with inventory
management issues: out-of-stocks and overstocks. At first glance, the two issues
appear unrelated out-of-stocks resulting from unexpectedly high sales, and overstocks
from unexpectedly low sales but they are really the flip side of the same problem. Both
result from inadequate planning and sales forecasting.
In sales forecasting process, one of the first things that often emerge is that they
have not been actually forecasting sales at all. Their focus instead has been solely on
22
COLLEGE OF BUSINESS
&ACCOUNTANCY
how much to buy. When an independent retailer focuses on how much to buy, they
usually start by looking at how much theyve bought in the past.
If we know how much inventory we want to end the month with, and how much
we expect to sell during the month, and then subtract how much inventory were going
to start the month with, we can calculate how much we need to bring in during the
month. In other words, everything starts with a good solid sales forecast. From there,
we can plan how much inventory well need to have to support that plan. Only then can
we
determine
accurately
how
much
inventory
well
need
to
buy.
(http://www.hurlbutassociates.com/retail-perspectives-blog/bid/52261/Sales
Forecasting-and-Inventory-Management-for-Independent-Retailers)
A good sales forecast takes into account relevant sales and inventory histories,
to identify extraordinary sales and inventory levels and any other unusual patterns. It
drills down to the department, category and sub-category level, as appropriate, to
identify opportunities and trends, as well as the potential impacts of increased
competition, emerging technology, changes in promotional patterns and new product
introductions. It rolls up from the subcategory, category and department levels to a total
forecasted sales increase that can be tested against the realistic expectations of what
can be actually achieved. It plans in both units and sales dollars, so that the plan is well
balanced between unit sales and the average selling price of each unit sold. It is
dynamic, so that it can be continually updated and adjusted as each month passes and
additional information is developed. It identifies the most likely level of sales for any
given month, not the level that might be possible if things broke just right.
23
COLLEGE OF BUSINESS
&ACCOUNTANCY
As a result, it has a bias toward a flat sales forecast for any given department,
category or subcategory, unless there is specific reason to forecast an increase or
decrease.
Thus, effective inventory management begins with a carefully developed sales
forecast. Only then can inventory levels be planned, and merchandise receipts
scheduled throughout the season. This is the key to eliminating both out-of-stocks and
over-stocks. (http://www.businessknowhow.com/money/estimatesales.htm)
Synthesis of Reviewed Materials

The reviewed materials from books, under graduate theses ad internet were
important to the present study since they provide information which helped the
researchers to intensify the understanding of the study. The reviewed literatures are
closely related to the present study since they tackled the effects of estimating sales to
inventory management. Likewise, they also helped the researchers in their
comprehension and analysis of how estimating sales would be a support plan in
managing inventory. It also gave additional ideas about the importance of estimated
sales in managing inventory. These related literature supported the findings of the study
conducted by the researchers.
The study conducted by Recinto et. al. (2000) points out the effects of sales
budget in establishing selling prices. The previous and present studies are similar
because they both consider sale as their one primary subject. However, the differences
24
COLLEGE OF BUSINESS
&ACCOUNTANCY
between the two studies are their participants. And the previous study focus on how the
sales budget affect the selling price while the present study focus on how the estimating
sales affect inventory management.
The study by Candava et.al., (2002) discussed the inventory system applied by
selected shopping centers. The previous and present studies are similar in sense of
giving information how to manage inventory. However, the studies differ in purpose,
since the former study aimed to determine and evaluate the inventory system adopted
by the Shopping Centers in Batangas City. On the other hand, the present study deals
with the determination of effect of estimating sales to inventory management of
convenience store in Batangas City.
The study conducted by Marasigan et. al., (2011) are similar to the present study
since they both used descriptive method of research with the questionnaire as the main
instrument for the gathering of data. On the other hand, they have different concept
since the past study focus how inventory management technique affects the pricing
strategies while the present study focus on how the estimating sales will affect the
inventory management.
The study conducted by Maulion et. al., (2004) are similar to the present study
because they are concerned on giving idea about inventory management in terms of
procedures adapted by the business. The difference between the past and present
studies is that they focused on different participants.
25
COLLEGE OF BUSINESS
&ACCOUNTANCY
Overall, the reviewed materials helped the researchers to know if estimating
sales has a significant effect to inventory management of convenience stores in
Batangas City. They served as guide to the researchers by providing meaningful and
reliable source of information which resulted to a better research work. They also
provide gainful insights on the continuous increase of convenience stores in the present
economy.
26
COLLEGE OF BUSINESS
&ACCOUNTANCY
CHAPTER 3
METHODOLOGY
This chapter represents the discussion of the research methodology used by the
researchers in conducting the study about the effects of estimating sales to inventory
management of convenience stores in Batangas City. Research methodology includes
the research design, participant of the study, data gathering instrument, data gathering
procedure and statistical treatment of data.
Research Design
This study intended to determine the effect of estimating sales to inventory
management of convenience stores in Batangas City. This research study used the
descriptive survey method, which is generally considered comprehensive research
using the library, the questionnaire, observation and others.
Descriptive research is defined as the research method employed in the studies
in order to test the hypothesis or to answer the questions concerning the status of the
subject. Descriptive method determines patterns of characteristics of variable in
particular instances. It describes the nature of situation as it exists at the time of the
study and explores the causes of particular phenomena.
27
COLLEGE OF BUSINESS
&ACCOUNTANCY
Descriptive design was used to gather pertinent required data through the use of
questionnaires. This serves as a tool in acquiring information with regard to the facts
and literatures. The descriptive survey of research was chosen and used by the
researchers because this method is the most appropriate method considering that the
purpose is to evaluate the effects of estimating sales to inventory management of
Participants of the Study

Based on the information gathered by the researchers from Business Permits
and License Office in Batangas Municipal Hall there were twenty five (25) convenience
stores in Batangas City, as of February 2015. Twenty four (24) convenience stores
completely answered the questionnaire and one store refused to answer due to issues
of confidentiality.
Profile of the Participants. The profile of the participants presented in this section
includes the data on age, civil status, gender, educational attainment and years of
service. This was included in the study to shed some light on the demographic
characteristics of participants. The frequency and percentage distribution of the profile
of the participants is presented in Table 1.
In terms of age, the majority of the participants are within the range of 20 35
years old with the frequency of 15 equivalents to 62.50% of the total sample population.
This is because within this age, the knowledge of an owner of a business like small
store is enough to cope up with the demand of work and responsibilities of their
28
COLLEGE OF BUSINESS
&ACCOUNTANCY
business. Four (4) participants account for 16.67% of the total sample of population
belonging to the 31 35 years old bracket. Within 26 30 years and above 40 years,
there are two (2) participants in each bracket with a percentage of 8.33%. Lastly, one
(1) participant falls within the 36 40 years old category.
Table 1
Frequency & Percentage Distribution of the Participants as to Profile
n= 24
Age
Frequency
Percentage
20-25
15
62.50
26-30
8.33
31-35
16.67
36-40
4.17
40 and above
8.33
TOTAL
Civil Status
24
Frequency
Single
100
Percentage
20
83.33
Married
Separated
3
1
4.17
TOTAL
Gender
24
12.50
100
Frequency
Percentage
Female
14
58.33
Male
10
41.67
TOTAL
Educational Attainment
24
Frequency
100
Percentage
23
95.83
4.17
College
High School
29

COLLEGE OF BUSINESS
&ACCOUNTANCY
TOTAL
24
100
With respect to civil status, majority of the participants with a frequency of twenty
(20) equivalents to 83.33% are single. Three (3) participants are married with a
percentage of 12.50% while one (1) participant is separated with a percentage of
4.17%. These findings may be due that the number of younger population are working
in the convenience stores because they have a flexible time to handle a store that open
long hours.
In terms of gender, the majority of the participants are female with a frequency of
14 equivalent to 58.33% while 10 or 41.67%are male participants. This means that in
the business, the role of females are increasing into the field. Therefore, there is no
more gender-specific.
With regard to educational attainment, the majority of the participants are college
graduates with the frequency of 23 or 95.83%. And only one (1) participant is high
school graduate with a percentage of 4.17% This portrays that most of the managers or
staff in the convenience stores are educated enough to manage and do their work.
Profile of the Participating Convenience Stores. The profile of the convenience
stores includes the basic information as to type of business ownership, length of
business operation, average monthly sales in pesos and number of employees. The
frequency and percentage distribution of the profile of convenience stores are shown in
the Table 2.
30
COLLEGE OF BUSINESS
&ACCOUNTANCY
Table 2
Frequency & Percentage Distribution of the Participating Convenience Stores as
to Profile
n= 24
Type of Business Ownership
Frequency
Sole Proprietorship
Percentage
12
50.00
Partnership
12.50
Corporation
37.50
TOTAL
Length of Business Operation
24
Frequency
100
Percentage
Less than 1 year
16.67
1 to 5 years
13
54.17
6 to 10 years
16.67
11 to 15 years
12.50
TOTAL
Average Monthly Sales in Peso
24
Frequency
P50,000 below
100
Percentage
11
45.83
P50,000 P100,000
25.00
P100,000- P P500,000
12.50
P500,000 above
16.67
TOTAL
Number of Employees
24
Frequency
100
Percentage
Below 5
11
45.83
5 to 10
37.50
11 to 15
8.33
Above 20
8.33
24
100
TOTAL
31

COLLEGE OF BUSINESS
&ACCOUNTANCY
Type of business ownership is classified as sole proprietorship, partnership,

corporation and cooperative. Twelve (12) participants are sole proprietorship, three (3)
of the participants are partnerships, while corporation has nine (9) participants. This
indicates that half of the participants chose to establish a sole proprietorship because of
the some advantages in putting up such business organization. One advantage would
be the relative ease in management, simple capital structure, internal control measures
that would safeguard assets (e.g. inventory) are easy to update and implement.
The length of the business operation of the convenience stores in Batangas City
was taken into considerations. The table indicates that thirteen (13) out of twenty five
(25) of the participants have operational years of 1 5 years with a percentage of
54.17%.
Less than one (1) year and 6 10 years have both four (4) frequency
equivalent to 16.67 %. And three (3) or 12.50% participants have operational years of
11 15 years. This shows that majority of the participants are new in operating the
business. It is may be due to the fact that new investment opportunities can be found in
Batangas City particularly.
In terms of average monthly sales in pesos, most of the convenience stores have
average monthly sales of less than 50,000 pesos with a frequency of 11 equivalent to
45.83%. Maybe this is because convenience stores have limited space and mostly were
just part of gasoline stations. Six (6) convenience stores have 50,000 pesos to 100,000
pesos with a percentage of 25% while four (4) convenience stores have more than
32
COLLEGE OF BUSINESS
&ACCOUNTANCY
500,000 pesos. And three (3) or 12.50% of total sample population have 100,000 pesos
to 500,000 pesos average monthly sales.
With regard to number of employees, the table shows that most of the
convenience stores operate with five (5) below employees with a frequency of eleven
(11) equivalent to 45.83%. Nine (9) stores have 5 10 employees or 37.50%. While
Above 20 and 11 15 numbers of employees are both have a frequency of two (2)
equivalent to 8.33%. Most of the participants have 5 and below employees, this shows
that since convenience stores have limited space, there is no much work to do, thats
why few employees are needed in operating the business.
Data Gathering Instrument

The researchers used questionnaires as data gathering instrument to generate
information required by the study.
The researchers read books, related unpublished materials and exchanged
opinions and ideas to formulate a draft of questionnaire. The first draft of the
questionnaire was submitted for revision. The questionnaire was revised according to
the given suggestions and recommendations by the adviser and was then again
presented to the adviser for correction and approval. The researcher looked for a CPA
validator that has knowledge on how to conduct a research study to validate the
questionnaire, to improve the content of the questionnaire and to effect some
corrections.
33
COLLEGE OF BUSINESS
&ACCOUNTANCY
The final draft of questionnaire was submitted to the adviser for approval last
May 5, 2015. A questionnaire was distributed to the participants for the purpose of
gathering data. It was composed of three parts. Part I had the personal profile of the
participant in terms of name, age, civil status, and gender. Part II dealt with the profile of
the business in terms of type of business ownership and length of business operation.
Part III served as the questionnaire proper of the study which includes how convenience
stores estimate sales in terms of territory, consumer preference and product life cycle. It
also includes how convenience stores manage inventory in terms of time and size of
order, demand of customers and procedure adapted by the business.
The type of questionnaire used in the study was the checklist method wherein
the participants could find it easy to answer a question. Participants can be made their
answer by putting a check mark on the items that correspond to their answer.
Data Gathering Procedure

The researchers gathered data necessary for the completion of the study.
Gathered information came from books, unpublished materials and online reference
materials. From the consulted resources, the researchers conceptualized the chosen
topic which was eventually proposed to the research adviser for approval. After the
approval of thesis proposal, the statement of the problem was established. A draft of
questionnaire immediately followed and presented to the research adviser.
Upon the approval of the questionnaire, the researchers went to the Municipality
of Batangas City to ask from Permits and License Division for the list of convenience
34
COLLEGE OF BUSINESS
&ACCOUNTANCY
store in Batangas City. Then, the researchers proceeded with the task of preparing letter
of request to ask permission from the participants and distributing the questionnaires to
the participants for them to answer.
The survey was conducted last May 2015 in Batangas City. Since the locations of
the businesses are all located in Batangas City, it was easier for the researcher to
personally distribute the questionnaires to the managers/owners of convenience store.
The participants were given one week to answer the questions listed on the
questionnaire. The researchers then collected personally the distributed questionnaire
and proceeded to make a tally of responses to each question. The data gathered were
tabulated, interpreted, and analyzed for the conclusion and formulation of findings and
recommendations of the study.
Statistical Treatment of Data

The application of statistics is very important in analyzing the data gathered.
Statistical tools help the researchers to measure the results that will serve as the basis
for quantitative analysis and interpretation of data. For the purpose of the study, the
following statistical tools were used:
Percentage Method. This is a descriptive method tool that is particularly useful in
expressing relative frequency of survey responses. This method is used in presenting
the profile of the participants and the profile of the convenience stores.
Weighted mean. This is another descriptive statistical tool that is synonymous
with average. It is a procedure for combining the means of two or more groups of
35
COLLEGE OF BUSINESS
&ACCOUNTANCY
different sizes. It was used to indicate particular item is more than once in a total that
said item was given in a difference ways as to result. It was also used to weight the
degree of gravity of the effect.
Pearson R Correlation. This method was used to measure and evaluate the
effect of estimating sales to the inventory management of the convenience store in
Batangas City. It was defined as parameter test used to measure the degree of
relationship between variables.
36
COLLEGE OF BUSINESS
&ACCOUNTANCY
CHAPTER 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This part of the paper presents, analyzes and interprets data gathered from the
survey conducted by the researchers. The data are presented in tabular form, for easier
comprehension. For clarity of presentation and consistency in the discussion, the data
are presented according to the objectives of the study.
1. Estimating Sales of Convenience Stores in Terms of Territory, Consumer Preference

and Product Life Cycle
This section presents ways on how the convenience stores in Batangas City
estimate their sales. Estimating Sales is defined as a prediction of a businesss units
and sales for some future period of time, up to several years or more. It is the
managements primary tool for predicting the volume of attainable sales. Managers
prepare this to determine the type and level of demand for both current and potential
new products. Estimating sales may be general if they calculate aggregate sales
attainable in an industry. Conversely, estimating may be very specific, detailing data by
individual products, sales territories, types of customers and so forth.
37
COLLEGE OF BUSINESS
&ACCOUNTANCY
The following focus on how convenience stores estimate their sales in terms of
territory, consumer preference and product life cycle.
1.1 Territory. Territory is the customer group or geographical area for which an
individual salesperson or a sales team holds responsibility.
Table 3 shows that knowing presence of competitors has the weighted mean of
3.33 while knowing the number of population within the territory has the weighted mean
of 2.88. Having sufficient sales people in your territory has the weighted mean of 3.00,
achieving appropriate balance among customer group has the weighted mean of 3.08
and implementing policies in particular territory in estimating sales has the weighted
mean of 3.17. The overall composite mean is 3.09 with the verbal interpretation of
Moderate Extent. This indicates that the convenience stores considered having
sufficient sales people, knowing the number of population, implementing policies in
estimating sales, achieving appropriate balance among customer group and knowing
presence of competitors in estimating sales in terms of territory. This means that
territory affects estimating sales in convenience stores. It is because territory for a
business is one of the most important decisions to make and can affect many aspects of
how it operates, such as total sales and how costly it is to run and also the territory must
be easily accessible and provide the customer with a feeling of safety.
Territories can be defined on the basis of geography, sales potential, history, or a
combination of factors. Companies strive to balance their territories because this can
reduce costs and increase sales.
38
COLLEGE OF BUSINESS
&ACCOUNTANCY
Sales potential forecast can be used to determine sales targets and to help
identify territories worthy of an allocation of limited resources. A sales potential forecast
is a forecast of the number of prospects and their buying power. It does not assess the
likelihood of converting potential accounts. Sales potential can be represented in a
number of ways. Of these, the most basic is population, i.e., the number of potential
accounts in a territory (https://en.wikipedia.org/wiki/Sales_territory).
Table 3
Weighted Mean and Verbal Interpretation of Territory and its Effect on Estimating
Sales of Convenience Stores
Territory
1. Having sufficient sales people in your
territory
Weighted
Mean
3.00
Verbal
Interpretation
Moderate Extent
2.88
Moderate Extent
3.17
Moderate Extent
3.08
Moderate Extent
3.33
Moderate Extent
2. Knowing the number of population within

the territory
3. Implementing policies in particular territory
in estimating sales
4. Achieving appropriate balance among
customer group
5. Knowing presence of competitors
Composite Mean
3.09
Legend: Scale Range

1.00 1.49
1.50 2.49
2.50 3.49
3.50 4.00
Moderate Extent
Verbal Interpretation
No Extent at All
Slight Extent
Moderate Extent
To a Great Extent
39
COLLEGE OF BUSINESS
&ACCOUNTANCY
1.2 Consumer Preference. Consumer preferences are defined as the subjective
(individual) tastes, as measured by utility, of various bundles of goods. They permit the
consumer to rank these bundles of goods according to the levels of utility, or the total
satisfaction of consuming a good or service. It analyzes how consumers maximize the
desirability of their consumption as measured by their preferences subject to
limitations
on
their
expenditures,
by
maximizing
utility
subject
to
consumer budget constraint.

Table 4 shows that knowing consumers order of their preference has the
weighted mean of 3.29, conducting survey in order to estimate sales and identifying
personal factors such as age, lifestyle, etc. of each consumer affect estimating the
sales, they both has the weighted mean of 2.83, identifying prior demand of customers
has the weighted mean of 3.21 and the buying habits of customer, with the weighted
mean of 3.17. The overall composite mean is 3.07 verbally interpreted as Moderate
Extent. This indicates that the convenience stores considered buying habits of
customer, conducting survey, identifying prior demand of customer, identifying personal
factors such as age, lifestyle, etc. and knowing consumers order in estimating sales in
terms of consumer preference. This means that consumer preference affects estimating
sales in convenience stores. Businesses need accurate information about changes in
consumer preferences to maximize sales.
Consumer preferences describe the reasons for the people make when selecting
products and services. Analyzing the factors that determine consumer preferences
helps businesses target their products towards specific consumer groups, develop new
40
COLLEGE OF BUSINESS
&ACCOUNTANCY
products and identify why some products are more successful than others. These
includes advertising, social institutions, cost, consumer income and available substitute.
(http://www.ehow.com/info_8116011_factors-affecting-consumerpreferences.html)
The
individual consumer has a set of preference and values whose determinations are
outside the field of economics. It measured in terms of satisfaction the consumer
obtains from consuming various combinations or bundles of goods.
Consumer buying behaviour refers to buying behaviour of final consumers,
individuals and households who buy goods and services for final consumption. All of
these final consumers combine to make up the consumer market. Consumer buying
patterns are affected strongly by cultural, social personal and psychological
characteristics. As products and services become more and more commoditized, many
businesses are moving to a new level in creating value for their customers. ( Anastacio,
et.al, 2008)
Table 4
Weighted Mean and Verbal Interpretation of Consumer Preference and its Effect
on Estimating Sales of Convenience Stores
Consumer Preference
1. Buying habits of customer
2. Conducting survey in order to estimate
sales
Weighted
Mean
3.17
2.83
Verbal
Interpretation
Moderate Extent
Moderate Extent
3.21
Moderate Extent
2.83
Moderate Extent
3. Identifying prior demand of customers

4. Identifying personal factors such as age,
lifestyle, etc. of each consumer affect
estimating the sales
41
COLLEGE OF BUSINESS
&ACCOUNTANCY
3.29
5. Knowing consumers order of their
preference
Composite Mean
Moderate Extent
3.07
Moderate Extent
Legend: Scale Range

1.00 1.49
1.50 2.49
2.50 3.49
3.50 4.00
No Extent at All
Slight Extent
Moderate Extent
To a Great Extent
1.3 Product Life Cycle. Product life cycle is the cycle through which every product
goes through from introduction to withdrawal or eventual demise. Stages are:
Introduction: When the product is brought into the market. Here, there's heavy
marketing activity, product promotion and the product is put into limited outlets in a few
channels for distribution. Sales take off slowly in this stage. The need is to create
awareness, not profits. The second stage is growth. In this stage, sales take off, the
market knows of the product; other companies are attracted, profits begin to come in
and market shares stabilize. The third stage is maturity, where sales grow at slowing
rates and finally stabilize. Products get differentiated, price wars and sales promotion
become common and a few weaker players exit. The fourth stage is decline. Here,
sales drop, as consumers may have changed. Product is no longer relevant or useful.
Price wars continue, several products are withdrawn and cost control becomes the way
out
for
most
products
in
this
stage
(http://economictimes.indiatimes.com/definition/Product-Life-Cycle).
Table 5 shows that determining good description of product if whether they have
stocks of product has the weighted mean of 3.71 and understanding the stages of your
products according to product life cycle with the weighted mean of 3.50, which both has
the verbal interpretation of to a Great Extent. It means that determining good description
42
COLLEGE OF BUSINESS
&ACCOUNTANCY
of products whether they have stocks of product and understanding the stages of your
products has a big role in business because its useful in measuring the state of a
product in correlation to the expectations of the consumers and it will help to identify
when products should be ordered or not. It is an ideal tool that enables forecast future
sales.
Table 5
Weighted Mean and Verbal Interpretation of Product Life Cycle and its Effect on
Estimating Sales of Convenience Stores
Product Life Cycle
1. Comparing last year sales of a particular
product
Weighted
Mean
3.38
Verbal
Interpretation
Moderate Extent
3.50
Great Extent
3.71
Great Extent
3.33
Moderate Extent
3.46
Moderate Extent
2. Understanding the stages of your products

according to product life cycle
3. Determining good description of product if
whether they have stocks of product
4. Requiring executive insights in order to
know the stages of the product
5. Establishing relationship between the
factors depends directly on the maturity of
a product in the market
Composite Mean
Legend: Scale Range
1.00 1.49
1.50 2.49
2.50 3.49
3.50 4.00
3.48
Moderate Extent
No Extent at All
Slight Extent
Moderate Extent
To a Great Extent
Establishing relationship between the factors depends directly on the

maturity of a product in the market has the weighted mean of 3.46, comparing last year
43
COLLEGE OF BUSINESS
&ACCOUNTANCY
sales of a particular product with the weighted mean of 3.38 and requiring executive
insights in order to know the stages of the product with the weighted mean of 3.33,
which all has the verbal interpretation of Moderate Extent. The overall composite mean
is 3.48 and the verbal interpretation of Moderate Extent. This means that comparing last
year sales of a particular product, requiring executive insights in order to know the
stages of the product and establishing relationship between the factors depends directly
on the maturity of a product in the market is still considered in estimating sales in
convenience store thus those factors do not have much impact on estimating sales
because it is not necessary for the convenience stores to compare last year sales and
required executive insight in order to provide accurate and reliable sales estimate.
As products move from the growth stage to the maturity phase, the primary
motive is improving sales to maximize profits. Even though demand for products at this
moment may naturally level off, the companies may spend less on advertising and
promotion. This is because when products reach the maturity phase, the companys
brand awareness is already well-established in the marketplace. The product life cycle
is an integral process in management of any product and revolves around the
introduction, growth, maturity and decline stages. For emerging businesses, the cycle
concept is an ideal tool that enables marketers to forecast future sales and plan new
marketing
strategies
(http://yourbusiness.azcentral.com/objectives-product-life-cycle-
14585.html).
The product life cycle provides a degree of structure to the life of products and
thereby provides direction for the diverse functional efforts required to produce and
44
COLLEGE OF BUSINESS
&ACCOUNTANCY
deliver product or service offerings. The PLC is thus uniquely positioned to act as a tool
for the strategic alignment of functional competitive efforts, helping focus the decision
making of the business so that actions of each level reinforce, instead of detract from,
the attainment of company goals. (Birou, et.al, 2015)
2. Inventory Management of Convenience Stores in Terms of Time and Size of Order,
Demand of Customers and Procedures adapted by the Business
This section of the research deals with how convenience stores manage their
inventory in different terms, that is, time and size of order, demand of customers and
procedures adapted by the business. PAS 2 defined inventories as assets, which are
held for sale in the ordinary course of business, in the process of production for such
sale or in the form of materials or supplies to be consumed in the production process or
in the rendering of services (Valix and Peralta, 2013).
2.1 Time and Size of Order. Inventory management determine when to order and how much
to order. Management should warrant a good inventory system because the effects of
mismanagement of inventory could result in the following: (a) Under-stocking and (b)
Over-stocking. With these possible effects, inventory should be taken with utmost care
and must address two major concerns: Timing of order and size of order (Anastacio, et.
al., 2010).
Table 6 shows that updating the time and size of order daily has the weighted
mean of 3.67, controlling the time and size of order has the weighted mean of 3.63,
making reasonable estimates of inventory ordering cost and using well created units of
45
COLLEGE OF BUSINESS
&ACCOUNTANCY
measuring like pcs.,lbs., etc. will make stock better to organize has the mean of 3.50
and all of these have the verbal interpretation of to a Great Extent. Using a system to
keep track of the inventory has a weighted mean of 3.41 and verbal interpretation of
Moderate Extent. The overall composite mean is 3.54 and verbal interpretation of to a
Great Extent. This indicates that convenience stores highly considered updating and
controlling the time and size of order,
making reasonable estimates of inventory
ordering cost, using well created units of measuring like pcs, lbs, etc. will make stock
better to organize in inventory management in terms of time and size of order. The
greater the size of order or the lower the order placement, the larger the average stock
level held in storage on the basis of order quantity. It also know which special orders sell
on occasion and have those products available in a limited quantity to keep the
inventory costs down and to develop a positive reputation for quickly filling special
orders.
Table 6
Weighted Mean and Verbal Interpretation of Time and size of order and its Effect
on Inventory Management of Convenience Stores
Time and size of order
1. Using a system to keep track of the
inventory
Weighted
Mean
3.42
Verbal
Interpretation
Moderate Extent
3.50
Great Extent
3.50
Great Extent
2. Making reasonable estimates of inventory

ordering cost
3. Using well created units of measuring like
pcs,lbs, etc. will make stock better to
organize
46
COLLEGE OF BUSINESS
&ACCOUNTANCY
3.67
Great Extent
3.63
Great Extent
4. Updating the time and size of order daily

5. Controlling the time and size of order
Composite Mean
3.54
Legend: Scale Range

1.00 1.49
1.50 2.49
2.50 3.49
3.50 4.00
Great Extent
No Extent at All
Slight Extent
Moderate Extent
To a Great Extent
To effectively manage the inventory one must have reasonable estimates of

inventory holding cost, ordering cost and shortage cost and knowledge of lead time
(Anastacio, et. al., 2010). Lead time is the time that elapses between the placing of an
order (either a purchase order or a production order issued to the shop or the factory
floor) and actually receiving the goods ordered. If a supplier cannot supply the required
goods on demand, and then the client firm must keep an inventory of the needed goods.
The longer the lead time, the larger the quantity of goods the firm must carry in
inventory(http://www.referenceforbusiness.com/management/Int-Loc/Inventory
Management.html)
2.2. Demand of Customer. Discerning customer demand is a critically important
and continuous process. Companies routinely obtain information from market research,
such as customer surveys and test-marketing campaigns, and through feedback from
sales personnel (Hilton, 2008).
Table 7 shows that making reliable forecast of customer demand has the
weighted mean of 3.54 and verbal interpretation of to a Great Extent. While having a
sales representative has the weighted mean of 3.13, making plan related in the number
47
COLLEGE OF BUSINESS
&ACCOUNTANCY
of their customers has the weighted mean of 3.21, considering customers opinion on
the product has the weighted mean of 3.38 and setting up strategic goals for service
level to create customers demand has the weighted mean of 3.46 and all of these have
a verbal interpretation of to Moderate extent. The overall composite mean is 3.34 and
verbal interpretation of Moderate Extent. This indicates that convenience stores
considered customers opinion on the product, having a sales representative, making
plan related in the number of their customers and setting up strategic goals for service
level to create customers demand in inventory management in terms of demand of
customers. It means that the demand of customers should consider in managing
inventory of convenience stores to have the flexibility in their supply chain to
reduce/increase inventory level as demand changes. Businesses that excel at
managing inventory have a strong understanding of demand.
Table 7
Weighted Mean and Verbal Interpretation of Demand of customers and its Effect
on Inventory Management of Convenience Stores
Weighted
Mean
3.54
Verbal
Interpretation
Great Extent
2. Considering customers opinion on the

product
3.38
Moderate Extent
3. Having a sales representative

4. Making plan related in the number of their
customers
3.13
3.21
Moderate Extent
Moderate Extent
Demand of customers
1. Making reliable forecast of customers
demand
48
COLLEGE OF BUSINESS
&ACCOUNTANCY
5. Setting up strategic goals for service level

to create customers demand
Composite Mean
3.46
3.34
Legend: Scale Range

1.00 1.49
1.50 2.49
2.50 3.49
3.50 4.00
Moderate Extent
Moderate Extent
No Extent at All
Slight Extent
Moderate Extent
To a Great Extent
The data in Table 7 also indicates that convenience stores make reliable forecast
of customer demand in managing inventory. Proper Inventory Management process
requires a reliable demand forecast of demand that allows calculating proper orders,
reconciling the cost of these orders with the buyers open-to-buy budgets, and working
out appropriate allocation and replenishment quantities (http://www.retalon.com/retalonsolutions/inventory-management-solutions).
There are steps in developing a reliable demand forecast: (1) Understand historic
demand and look at the drivers that influence demand; (2) Monitor market trends. Avoid
the tendency to make decisions based simply on media information, and instead
become intimately aware of the dynamics of your marketplace. This can be done
through continuous communication with friendly competitors, customers, bankers, and
other individuals who are attuned to your marketplace. (3)Identify and track key
indicators. Maintaining a view of the changing demographics in your sales regions can
create
good
window
into
your
future
demand
(http://ww2.cfo.com/growth-
strategies/2011/10/three-tips-for-creating-a-reliable-demand-forecast/).
One of the functions of inventory management is to meet consumers demand.
Creating a successful forecast demand ensures that you have enough inventory for the
49
COLLEGE OF BUSINESS
&ACCOUNTANCY
upcoming sales period. A demand forecast looks at sales data from the past to
determine the consumer demand in the future. With an accurate demand forecast, you
will have operations that are more efficient, better customer service, and a reduced lead
time on manufacturing products. An accurate demand forecast will help you avoid high
cost
operations,
poor
customer
service,
and
shortage
of
product
(http://www.wikihow.com/Forecast-Demand).
2.3 Procedures adapted by the business. The Inventory Management Policy and
Procedure minimizes inventory and costs of inventory ownership. The Procedure
ensures the best inventory practices are employed and align with overall company
financial objectives and meet operational needs. It applies to all departments involved in
managing inventories including the Finance, Accounting, Purchasing, Sales and
Operations (http://www.bizmanualz.com/shop/inventory-management-policy-procedure).
Table 8 shows that providing adequate facilities for handling storage of
inventory has the weighted mean of 3.63 and verbal interpretation of to a Great Extent,
while using of bar code technology/swiping has the weighted mean of 3.21 and verbal
interpretation of Moderate Extent. Assigning appropriate number of employees has the
weighted mean of 3.46 and verbal interpretation of Moderate Extent. The overall
composite mean is 3.48 and verbal interpretation of Moderate Extent. This indicates that
convenience stores considered establishing processing and recording procedure,
providing adequate facilities for handling storage of inventory, and conducting periodic
inventory cost in managing inventory in terms of procedures adapted by the business. It
means that the procedures or policies and people who work with stock and use
50
COLLEGE OF BUSINESS
&ACCOUNTANCY
inventory system are the most critical element in establishing a pretty good inventory
system. Managers must make sure that these people know what to do with items that
are received, taken from stock, reserve for future use, required for production, or who is
responsible for making certain transactions.
The data in Table 8 shows that establishing processing and recording procedure,
providing adequate facilities for handling storage of inventory and conducting periodic
inventory cost would have greatly affect in inventory management of convenience
stores. According to Maulion et. al.,2004, the management should consider the quantity
of inventory that the business handles in choosing the period of conducting physical
count. And the accountants or auditors must be aware of the procedures affecting
inventory.
Table 8
Weighted Mean and Verbal Interpretation of Procedures adapted by the business
and its Effect on Inventory Management of Convenience Stores
Weighted
Mean
3.54
Verbal
Interpretation
Great Extent
2. Providing adequate facilities for handling

storage of inventory
3.63
Great Extent
3. Assigning appropriate number of

employees
3.46
Moderate Extent
4. Conducting periodic inventory cost

5. Using of bar code technology/swiping
Composite Mean
3.54
3.21
3.48
Great Extent
Moderate Extent
Moderate Extent
Procedures adapted by the business

1. Establishing processing and recording
procedure
Legend: Scale Range
51
COLLEGE OF BUSINESS
&ACCOUNTANCY
1.00 1.49
1.50 2.49
2.50 3.49
3.50 4.00
No Extent at All
Slight Extent
Moderate Extent
To a Great Extent
The data in Table 8 also shows also that assigning appropriate number of
employees and using of bar code technology/swiping would moderately affect inventory
management of convenience stores. Codes, including barcodes, can make the whole
process much easier but it can still be quite time-consuming. Checking stock more
frequently - a rolling inventory - avoids a massive annual exercise, but demands
constant attention throughout the year. Radio Frequency Identification (RFID) tagging
using handheld readers can offer a simple and efficient way to maintain a continuous
check on inventory. With regard to employees, managers should train staff about
security systems and disciplinary policies and procedures. Training about the cost of
stock theft will help, as many people aren't aware of the implications for company
turnover and job security (http://www.infoentrepreneurs.org/en/guides/stock-control-andinventory/).
3. Effect of Estimating Sales to Inventory Management of Convenience Stores in Batangas

City.
This section answers the third objective of the study. The significant effect of
estimating sales to inventory management of convenience stores in Batangas City was
investigated by matching the independent variables: territory, consumer preference and
product life cycle with the dependent variables: time and size of order, demand of
customer and procedures adapted by the business. The hypothesis of the study posted
in the introductory part was tested in the part of this paper. The Pearson R Correlation
52
COLLEGE OF BUSINESS
&ACCOUNTANCY
was used to test the hypothesis that territory, consumer preference and product life
cycle has significant effect to inventory management. The aforementioned method was
said to be the most appropriate and applicable method in order to come up with the
reliable results. The results are presented in Tables 9, 10 and 11. Table 9 shows the
Pearson correlation and the corresponding verbal interpretation of the effect of
estimating sales to the inventory management of convenience stores in terms of time
and size of order.
The first and perhaps most important key to better estimating is a complete
understanding of what it actually is and-of equal importance what it is not. Estimating
Sales is a management process, not a computer program. This distinction is important
because it affects so many areas across an organization. Regardless of whether
business sells goods or services, it must have a clear picture of how many of those
goods or services it can sell, in both the short and long terms. That way, it can plan to
have an adequate supply to meet customer demand. Estimating is critical to a business
production or operations department. Adequate materials must be obtained at the
lowest possible price; adequate production facilities must be provided at the lowest
possible cost; adequate labor must be hired and trained at the lowest possible cost; and
adequate logistics services must be used to avoid bottlenecks in moving products from
producers to consumers. None of these fundamental business functions can be
performed effectively without accurate sales forecasts.
Sufficient capacity must be maintained to produce planned volume of goods. The
production capacity should be assessed and coordinated to avoid shortage (Russell,
53
COLLEGE OF BUSINESS
&ACCOUNTANCY
2000). Maximum capacity and demand are determination productive scheduling to
avoid excess production that would hamper inventory level management.
Table 9 shows that the following: territory, consumer preference and product life
cycle has a Pearson correlation of 0.484, 0.636 and 0.771 correspondingly, all of which
verbally translate to significant because these three factors should have to be
considered in making sales forecast. The more accurate the sales forecast the better
prepared your business will be to manage its inventory.
Territory is significant in inventory management in terms of time and size of order
because it influences the size and quality of a businesss target customer base, which in
turn affects sales forecast predictions. Time of order is the time elapsing between the
submittal of requisition or order and shipment of material by the supplying activity. Size
of order is the volume or amount of the product that you will order. Convenience stores
must know the presence of competitors in their territory in order to set the time and size
of order properly so that the store can prevent under stocking or overstocking of goods.
Table 9
Pearson Correlation and Verbal Interpretation of the Effect of Estimating Sales to
Inventory Management in terms of Time and Size of Order
Time and Size of
Order
Territory
Pearson
Correlation
0.484
p-value
Significance
0.016
Consumer
Preference
0.636
0.001
Product Life
Cycle
0.771
<0.001
Legend:
S Significant
NS Not Significant
54
COLLEGE OF BUSINESS
&ACCOUNTANCY
Product life cycle is significant in inventory management in terms of time and size
of order because its not enough to just have the right number of products in stocks you
also need to know how long you should selling them. The product life cycle
management needs to become just as important as your inventory management in the
beginning of a products life, its best to keep inventory and production levels low so it
wont be too hard to make changes to the product. As early adopters start to pay
attention to the product and spread the word, theyll need to slowly raise the inventory
levels to keep up with the new found demand. As it grow into new markets, it will need
to optimize inventory levels in multiple locations to make sure they have enough
products in each location to meet demand. Its critical to keep delivery times short and
manufacturing lines running to stay ahead of the competition.
Consumer preference is also significant in estimating sales in terms of time and
size of order. In the psychology literature, preferences can be regarded as an
individuals attitude towards a set of objects, typically reflected in an explicit decisionmaking process. It explains that evaluative judgment in the sense of liking or disliking an
object, which is the most distinctive definition used in psychology. Nevertheless, it does
not mean that a preference is inevitably constant over time. Preference can be notably
modified by decision-making processes, such as choices, even in an unconscious way.
Customer preference can be defined as tending to indicate choices among neutral or
more valued options with acceptance indicating a willingness to tolerate the status quo
or some less desirable option. Why do people sometimes act inconsistently over time
engaging behaviour that would have been rejected if contemplated in advance and that
55
COLLEGE OF BUSINESS
&ACCOUNTANCY
may be regretted after the fact? This question has puzzled generations of social
scientists. One view, espoused by Marshall in the opening quote, is that timeinconsistent behaviour arises from unpredictable changes in moods and tastes.
Product life cycle is significant to estimating sales in terms of time and size of
order because it can affect the availability and hence the ability to use past sales data
for statistical forecasting. It means that the availability of data and possibility of
establishing relationships between the factors depend directly on the maturity of a
product, and hence the life cycle stage is a prime determinant of the forecasting method
to be used. It must consider the stage of the PLC for which it is making the forecast.
Table 10 shows the Pearson correlation and the corresponding verbal
interpretation of the effect of estimating sales to inventory management of convenience
store in terms of demand of customers. The following: territory, consumer preference
and product life cycle has the Pearson correlation of 0.496, 0.626 and 0.857
correspondingly, all of which verbally interpreted as significant.
Table 10
Inventory Management in terms of Demand of Customers
Demand of
Customers
Territory
Pearson
Correlation
0.496
p-value
Significance
0.014
Consumer
Preference
0.626
0.001
Product Life
Cycle
0.857
<0.001
56
COLLEGE OF BUSINESS
&ACCOUNTANCY
Legend:
S Significant
NS Not Significant
Territory in inventory management is significant in terms of demand of customers

because it helps in achieving the greater number of target consumers that will result in
gaining more profits.
Product life cycle in inventory management is significant in terms of demand of

customers because it helps in knowing what products are going to produce, phase out
and improve. It means that managers need to have product life cycle in order to
appropriately plan the corresponding levels of production, inventory, sales staff,
distribution, marketing, and advertising. It is one of the major demand patterns that need
to be accounted for in order to maintain the desired inventory levels.
Consumer Preferences in inventory management is significant in terms of
demand of customers because the consumer be able to rank the products according to
the amount of satisfaction obtained from them. By predicting sales, managers can more
accurately plan for what products needed. It allows making informed decisions about
what consumers need, how much they need and when they need the product to avoid
over stock and have products go bad. In other words, the consumer has different
preferences over the different combinations of goods defined by the set of commodity
bundles. The level at which a customer desires your product can affect the demand of
customers. As more customers want a product or service, the demand increases, and
as they want it less, the demand decreases. The level of inventory can change
57
COLLEGE OF BUSINESS
&ACCOUNTANCY
depending on the season, types of advertising they see or information they receive from
friends and family.
Table 11 shows the Pearson correlation and the corresponding verbal
interpretation of the effect of estimating sales to inventory management of convenience
store in terms of demand of customers. The following: territory, consumer preference
and product life cycle has the Pearson correlation of 0.556, 0.579 and 0.729
correspondingly, all of which verbally interpreted as significant.
Table 11
Inventory Management in terms of Procedures adapted by Business
Procedures
adapted by
Business
Territory
Pearson
Correlation
p-value
Significance
0.556
0.005
Consumer
Preference
0.579
0.003
Product Life
Cycle
0.729
<0.001
Legend:
S Significant
NS Not Significant
4. Guidelines in estimating sales to effectively manage inventory of convenience stores

in Batangas City
There is a direct correlation between sales and inventory. Inventory is the
number of units, and the value of those units, that are available for sale or manufacture.
Theoretically, the more units a business has on hand to sell or manufacture, the more it
58
COLLEGE OF BUSINESS
&ACCOUNTANCY
should sell. In this way, inventory affects sales and consequently inventory levels are
controlled by sales.
Estimating Sales is the prediction of future performance based on available
information about past performance. The forecast that your sales force provides is the
source of information that allows managing virtually all aspects of your business. It is
much easier than you think and much more useful than you imagine. Businesses that
uses sales forecasting tends to perform better than those that dont.
Sales forecasting or estimating sales is the process of a company predicting
what its future sales will be. Accurate sales forecasting enables company to make
informed business decisions. Sales forecasting gives insight on whether a company
should expand information about cash flow and the ability to effectively manage its
resources. Without forecasting a company would be unsure of what inventory level to
maintain, unsure on how it should allocate resources across the company, and it would
have a hard time predicting future success.
A businesss inventory is one of its major assets and represents an investment
that is tied up until the item is sold or used in the production of an item that is sold. It
also costs money to store, track and insure inventory. Inventories that are mismanaged
can create significant financial problems for a business, whether the mismanagement
results in an inventory glut or an inventory shortage. Successful inventory management
involves creating a purchasing plan that will ensure that items are available when they
are needed and keeping track of existing inventory and its use.
59
COLLEGE OF BUSINESS
&ACCOUNTANCY
Inventory management also means maintain effective internal controls over
inventory, including safeguarding the inventory from damage, using purchase orders to
track inventory movement, maintaining an inventory ledger, and frequently comparing
physical inventory counts with recorded amounts.
Effective inventory management begins with a carefully developed sales
forecast. Only then can inventory levels be planned, and merchandise receipts
scheduled throughout the season. This is the key to eliminating both out-of-stocks and
over-stocks.
Objectives
Estimating sales is a key element in conducting a business. The realism that
good forecasting can help to develop and improve strategic plans by increasing a
knowledge of the marketplace. The forecast that a sales force provides is the source of
information that allows the owners/managers of convenience stores to manage virtually
all aspects of the business particularly in inventory.
To help owners and managers of convenience stores to estimate sales more
effectively.
To provide ways on how to maintain inventory at appropriate level.
To inform managers/owners on how to use the sales forecast in managing
inventory.
Guidelines to Effectively Estimate Sales of Convenience Stores

You need to estimate sales because sales provide the income for the business.
Without sales, you have no business. A forecast enables you to set sales target, budget
effectively and complete a cash flow forecast. An accurate gives you the hard facts to
60
COLLEGE OF BUSINESS
&ACCOUNTANCY
make business decisions. The researchers come up with a set of guidelines that will be
useful in creating sales forecast:
Use past results as a guide. Use results from the recent past if your business has
them. Start a forecast by putting last years numbers into next years forecast, and then
focus on what might be different this year from next. Ask questions like: (1) Do you have
new opportunities that will make sales grow? (2) Do you have new marketing activities
or promotions? If its a yes, then increase the forecast. In contrast, nobody wants to
forecast decreasing sales, but if thats likely, you need to deal with it by cutting costs or
changing your focus.
Predict sales pattern. With this you can more accurately plan for what products or
components you need. You definitely don't want to miss an opportunity by running out of
materials during a busy season and having to scramble or pay extra to order what you
need. On the other hand, you don't want to overstock and have products go bad or have
to recoup your expenses over a long, drawn-out period. Sales forecasting allows you to
make informed decisions about what you need, how much you need and when you
need it.
Research a profile of your target audience. Knowing your target audience can
help you develop a report on their trends. Your target audience is who you feel your
potential customers will be, and the trends are any changes in that target audience
buying habits.
Talk to your customers about their expectations. When you are able to
accurately identify and adequately meet your customers' expectations, your customer
61
COLLEGE OF BUSINESS
&ACCOUNTANCY
service reputation will automatically be enhanced. It will result in increased sales as
customers feel more at ease and satisfied transform from first-time visitors to loyal
customers.
Target your geographic selling location. In case of a retail business like
convenience store, it needs to be located in a well populated area and which is easily
accessible. A good location goes a long way in making a business successful.
Determine how the competition will affect your sales. Who else is doing what
you're planning to do? How well do they do it? By studying the competition you can
learn from others' mistakes - or even what their customers appreciate. Learn how much
people are willing to pay for your product or service and how you could enhance the
current offerings.
Guidelines in Managing Inventory of Convenience Stores
Inventory management is important from the view point that it enables to address
two important issues: (1) the firm has to maintain adequate inventory for smooth
production and selling activities and (2) it has to minimize the investment in inventory to
enhance firm's profitability.
Investment in inventory should neither be excessive nor inadequate. It should
just be optimum. Maintaining optimum level of inventory is the main aim of inventory
management. Excessive investment in inventory results into more cost of fund being
tied up so that it reduces the profitability, inventories may be misused, lost, damaged
and hold costs in terms of large space and others. At the same time, insufficient
investment in inventory creates stock-out problems, interruption in production and
62
COLLEGE OF BUSINESS
&ACCOUNTANCY
selling operation. Therefore, the firm may lose the customers as they shift to the
competitors. Financial manager, as he involves in inventory management, should
always try to put neither excessive nor inadequate investment in inventory. Here are
some guidelines that will be useful in managing inventory:
Develop an Inventory Tracking Method. A good inventory tracking system will
tell you what merchandise are in stock, what is on order, when it will arrive and what
you've sold. With such a system, you can plan purchases intelligently and quickly
recognize the fast-moving items you need to reorder and the slow-moving items you
should mark down or specially promote.
When considering what type of inventory tracking method to use, examine the
immediate and future applications of the system. If starting a retail store, nearly
everything purchased from your suppliers will use a standard retail bar code.
Establish Inventory Control. Inventory control is important to ensure quality
control in businesses that handle transactions revolving around consumer goods.
Without proper inventory control, a large retail store may run out of stock on an
important item. A good inventory control system will alert the retailer when it is time to
reorder.
Automated inventory control systems work by scanning a barcode either on the
item. A barcode scanner is used to read the barcode, and the information encoded by
the barcode is read by the machine. This information is then tracked by a central
computer system.
63
COLLEGE OF BUSINESS
&ACCOUNTANCY
Keep an eye on your suppliers. Good service from your suppliers is a vital
component to success because delays with your supplier could impact on your own
products and services. If your supplier is regularly behind on delivery find out why. If the
problem isnt solvable you may find another supplier to be more reliable.
A good relationship with your supplier is vital to the success of your business.
You need to know that you can count on them to respond in a reasonable time frame
should you have any problems or queries.
Make sure that your inventory environment promotes efficiency and extends
product life. Convenience stores must have the ability to store refrigerated, frozen and
shelf-stable products. Storage units should be equipped with thermometers to keep
products at the optimal temperature and maintain product quality. Employees need to
be able to restock frozen and refrigerated foods while minimizing exposure to roomtemperature environments. It helps store workers easily restock inventory when boxes
are clearly labelled with the label facing outward.
Forecast Needs. Since convenience stores sell perishable items, their owners
need to be experts at forecasting demand and purchasing inventory. Over-purchasing
means that inventory will become obsolete or spoil; under-purchasing drives away
customers if you can't meet their needs. Although it seems convenient to allow
employees to place orders whenever necessary, owners should place controls around
purchasing. Require employees to fill out a purchase requisition and only
allow managers to place orders. Managers can analyze past data and evaluate industry
trends to ensure they're stocking the right products in the appropriate quantities.
64
COLLEGE OF BUSINESS
&ACCOUNTANCY
CHAPTER 5
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
65
COLLEGE OF BUSINESS
&ACCOUNTANCY
This chapter presents the summary, findings, conclusions and recommendations

of the researchers regarding the analysis of the effects of estimating sales to inventory
management of convenience stores in Batangas City.
Summary
This study intended to determine the effects of estimating sales to inventory
management of convenience stores in Batangas City.
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?
66
COLLEGE OF BUSINESS
&ACCOUNTANCY
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
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
1 Estimating Sales of Convenience Stores

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.

Consumer Preference. Based on the data gathered, the estimating sale 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.
67
COLLEGE OF BUSINESS
&ACCOUNTANCY
3
Product Life Cycle. The estimating sale of product life cycle of convenience store is
moderately extent. It gained the composite mean of 3.48 this means 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 estimating sales of the convenience stores.
2 Inventory Management of Convenience Stores

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 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
customers demand.
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
Based on the statistical treatment of the data using Pearson Correlation, it can be
gathered that estimating sales has a significant effect to inventory management of
68
COLLEGE OF BUSINESS
&ACCOUNTANCY
Convenience Store in Batangas City. This means that estimating sales in terms of
territory, consumer preference and product life-cycle can influence the decision making
of managers and owners of convenience stores in managing their inventory in terms of
time and size of order, demand of customer and procedures adapted by the business.
Conclusions
Based on the information gathered and interpreted, the researchers have
reached the following conclusions.
1. The Convenience Stores in Batangas City have moderately consider territory,
consumer preference and product life cycle in estimating sales.
2. There are several factors affecting inventory management of Convenience
Stores. They moderately consider demand of customers and the procedures
adapted by the business in managing inventory. However, time and size of order
is the only factor considered to be a great factor in inventory management.
3. There is a significant effect between estimating sales and inventory management
of Convenience Stores in Batangas City.
Recommendations
The following are humbly recommended by the researchers from the conclusions
derived in this study:
1 Managers/Owners of Convenience Stores should conduct an evaluation
concerning the basis used in estimating sales. Such evaluation should focus on
how the basis employed helps in achieving the organizations profit objectives,
69
COLLEGE OF BUSINESS
&ACCOUNTANCY
and because such evaluation may result in increased revenue, increased
customer retention, decreased costs and increased efficiency.
2 The management of the Convenience Stores should focus on all inventory
management as there is no denying that it is a tricky job because so many
factors affecting future sales; by determining current stock levels and the value of
the stock, managers may use accounting or stock control software to track
individual stock items.
3 It would be a great help for Convenience Stores to have an accurate knowledge
in estimating sales in terms of the territory, consumer preference and product life
cycle of businesses and managing inventory in terms of time and size of order,
demand of consumer and procedures adapted by the business. This is to ensure
that they have the right level of stock to satisfy customer needs, by working out
which items of stock sold make the most gross margin.
4 The guidelines proposed by the researchers are highly recommended to be used
by owners/manager of convenience stores to have an accurate sales forecast
and efficient inventory management.
5 Future researches 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
70
COLLEGE OF BUSINESS
&ACCOUNTANCY
BIBLIOGRAPHY
A. BOOKS
Anastacio, Ma. Flordeliza Ph.D., CPA, Dacanay, Roberto C., CPA, and Leonardo E.
Aliling, CPA. Fundamentals of Financial Management. Manila: Rex Bookstore.
2010
Bryars, Lloyd L. Ph.D. and Leslie W. Rue, Ph.D. Business Management. Teachers
Annotated Edition. USA: McGraw Hill. 2006
Diola, Zenaida S. and Edgar M. Tichepco.Marketing: A Simplified Approach. C& E
Publishing, Inc. 2009
Dubrin, Andrew J. Essentials of Management. Seventh Edition. USA: Thomson South
Western, a part of Thomson Co. 2006
Hilton, R. W. Managerial Accounting: Creating Value in Dynamic Business
Environment. 2008
Longenecker, Justin G., Moore, Carlos W., Petty, William J. and Leslie E. Palich.Small
Business Management.International Edition. USA: Thomson South-Western, a
part of Thomson Co. 2006
Moorman, Jerry W. and Halloran, James W. Successful Business Planning for
Entrepreneurs. USA: Thomson South-Western, a part of Thomson Co. 2006
71
COLLEGE OF BUSINESS
&ACCOUNTANCY
Russell, Roberta S., taylor III, Bernard W. Operations Management.Singapore: Pearson
Education, Asia Pte Ltd. 2000
Valix, Conrado T., Peralta, Jose F. and Valix, Christian Aris M. Financial
Accounting.
Volume I. Revised Edition. Manila: GIC Enterprises & Co., Inc. 2013
Williams. Chuck. Management.Fourth Edition. USA: Thomson South-Western, a part of
Thomson Co. 2007
B. UNPUBLISHED MATERIALS
Candava, Maria M., Magnaye, Melanie G. and Ramirez, Rosalie R. Inventory System
Applied by Selected Shopping Centers in Batangas City. Unpublished
Undergraduate Thesis. University of Batangas, 2001-2002
Liwag, Karen V., Chavez, Toneonette R. and Mary Joy P. Semira. The Effects of
Inventory Management Control on the Profitability of Merchandising Firms in
Rosario, Batangas. Unpublished Undergraduate Thesis. University of Batangas,
2003
Marasigan, Mark Anthony A., Orlina, Madelyn V. and Alvin C.Tatlonghari.The Effects
of Inventory Management Technique to the Pricing Strategies of the
Owners of Grocery Stores in Batangas City. Unpublished Undergraduate
Thesis,
University of Batangas,
2011.
Maulion, Ronalyn M., Galit, Sherryl M. and Maderazo Lilibeth L. Control Procedures
on
Errors and Irregularities in Inventory Management by Feed mill
Companies in Lipa City. Unpublished Undergraduate Thesis, University of
Batangas,
2004.
Recinto, Argie T., Fruelda, Sheryl and Reyes, Ramir. The Effects of Sales Budget in
establishing Selling Prices of Drugstores in Lipa City. Unpublished
Undergraduate Thesis. University of Batangas, 2000.
C. JOURNALS
Gupta, Abhishek. Sales Forecasting & Market Potential: Best Practices in India.
International Journal of Advanced Marketing and Research, Vol. 1, Issue 1, pp.172
COLLEGE OF BUSINESS
&ACCOUNTANCY
7,2013.http://management.cloudjournals.com/index.php/IJAMR/article/view/Mgmt
-25.
Wanke, Peter. A Conceptual Framework for Inventory Management: Focusing on LowConsumption Items. Production and Inventory Management Journal, Vol. 49, No.
1,2014.http://www.scielo.br/scielo.php?
pid=S0104530X2012000400002&script=sci_abstract.
Maharaj, S. Inventory Management Practices in Pharmacies Across Trinidad and
Tobago. International Journal of Universal and Life Sciences 2(3): May-June
2012. (ISSN): 2249-6793. http//www.academia.edu/1588538/INVENTORY
MANAGEMENT PRACTICES
Anastacio, Ma. Flordeliza L, Peros, Margarita E., Imperial, Jason Leo R., The Brand
Preferences of Consumers in Metro Manila: A Market Research. SAM Research
Journal, Vol. 15 No. 1 2008-2009.
Birou, Laura M., Fawcett, Stanley E., Magnan, Gregory M. The Product Life Cycle: A
Tool for Functional Strategic Alignment. International Journal of Purchasing and
Materials
Management,
Vol.
34,
No.
2,
2012.
https://www.questia.com/library/journal/1G1-20577856/the-product-life-cycle-atool-for-functional-strategic
C. ON-LINE RESOURCES
http://www.bizmanualz.com/shop/inventory-management-policy-procedure.
on August 03, 2015
http://www.businessknowhow.com/money/estimatesales.htm.
26,2015
Retrieved
Retrieved
on
January
http://ww2.cfo.com/growth-strategies/2011/10/three-tips-for-creating-a-reliable-demandforecast/. Retrieved on August 03, 2015

http://www.entrepreneur.com/article/77674. Retrieved on August 03, 2015
http://yourbusiness.azcentral.com/objectives-product-life-cycle-14585.html.
on August 27, 2015
73
Retrieved
COLLEGE OF BUSINESS
&ACCOUNTANCY
http://economictimes.indiatimes.com/definition/Product-Life-Cycle. Retrieved on August
12, 2015
http://www.forbes.com/sites/scottedinger/2013/06/03/Four-principles-for-great-salesforecasts/. Retrieved on September 5, 2015
http://www.wikihow.com/Forecast-Demand. Retrieved on August 03, 2015
http://www.hurlbutassociates.com/retail-perspectives-blog/bid/52261/Sales-Forecastingand-Inventory-Management-for-Independent-Retailers. Retrieved on January 08,
2015
http://www.clearlyinventory.com/inventory -basics. Retrieved on September 5, 2015
http://www.retalon.com/retalon-solutions/inventory-management-solutions Retrieved on
August 03, 2015
Inman, Anthony R. Inventory Management. http://www.referenceforbusiness.com/
management/Int-Loc/InventoryManagement.html. Retrieved on August 03, 2015
http://www.ehow.com/info_8116011_factors-affecting-consumerpreferences.html
Retrieved on August 15, 2015
https://en.wikipedia.org/wiki/Sales_territory. Retrieved on August 12,
2015
http://www.infoentrepreneurs.org/en/guides/stock-control-and-inventory/. Retrieved on
August 03, 2015
http://smallbusiness.chron.com/estimate-accurate-sales-projections-13704.html.
Retrieved on January 26,2015
74
COLLEGE OF BUSINESS
&ACCOUNTANCY
APPENDIX A
LETTER OF INQUIRY
(Office of the Mayor)
February 11, 2015
HON. EDUARDO B. DIMACUHA
City Mayor
Batangas City
SIR:
We are requesting from your good office to provide us the list of convenience store
operating in Batangas City. The said list will be used in our research for thesis writing
entitled EFFECTS OF ESTIMATING SALES TO INVENTORY MANAGEMENT OF
CONVENIENCE STORES IN BATANGAS CITY.
Hoping for your consideration and favorable action.
Very Truly Yours,

75
COLLEGE OF BUSINESS
&ACCOUNTANCY
(Sgd)Rhica May H. De Torres
(Sgd)Rhealyn M. Bucal
(Sgd)Krizza Mae R. De Leon
(Sgd)RusselBercasio
Noted by:
(Sgd)Dr. Jesus P. Briones

Research Adviser
APPENDIX B
LETTER OF REQUEST
(RESPONDENTS)
May 5, 2015
Dear Sir / Madam:
The undersigned are Fourth Year Accountancy students of the University of
Batangas, as a requirement in Research 102, Research Implementation and
Presentation, are conducting a research about EFFECTS OF ESTIMATING SALES TO
INVENTORY MANAGEMENT OF CONVENIENCE STORES IN BATANGAS CITY. In
relation to this, questionnaires will be distributed in gathering data and we have chosen
you to be one of our participants.
We shall appreciate it very much if you could lend little of your time to answer the
questionnaire attached. We assure you that all information gathered will be treated with
confidentiality and will be used only for research purposes.
Thank you very much and we are hoping for your kind response regarding this
matter.
76
COLLEGE OF BUSINESS
&ACCOUNTANCY
Very truly yours,

(Sgd)Rhica May H. De Torres
(Sgd)Rhealyn M. Bucal
(Sgd)Krizza Mae R. De Leon
(Sgd)RusselBercasio
Noted by:
(Sgd)Mr.Doringer P. Cabrera, CPA, MBA
Research Adviser
APPENDIX C
QUESTIONNAIRE
The purpose of this survey is to find out the effect of estimating sales to inventory
management of convenience stores in Batangas City. All information is important in
conducting our research. We assume that all answers will be respected and kept
confidential.
Name: ________________________________________
Position: ______________________________________
Name of convenience store: ______________________
Store Address: _________________________________
Telephone Number: _____________________________
Direction: Please read the items below and supply the necessary information.
Put a check ( / ) on the space provided.
I. Personal profile of participant
Age:
( ) 20-25 years old
( ) 26-30 years old
( ) 36-40 years old

( ) 40 years old and above
77

COLLEGE OF BUSINESS
&ACCOUNTANCY
( ) 31-35 years old
Civil status:
( ) Single
( ) Widower
Gender:
( ) Married
( ) Separated
( ) Male
( ) Female
Highest Educational Attainment:

( ) Elementary
( ) Highschool
( ) Post Graduate
( ) College
( ) Vocational
Others please specify: ___________
Years of service
( ) 5 below
( ) 6-10
( ) 11-20
( ) 21-30
( ) 31-40
( )40 above
II. Profile of the Business

Type of Business Ownership:
(
(
(
(
) Sole proprietorship
) Partnership
) Corporation
) Cooperative
Length of Business Operation:

( ) Less than a year
( ) 1-5 years
( ) 6-10 years
( ) 11-15 years
others please specify: ___________
Average Monthly Sales in Peso
( ) 50,000 below
( ) 50,000-100,000
( ) 100,000-500,000
( ) 500,000 above
78
COLLEGE OF BUSINESS
&ACCOUNTANCY
Number of employees
( ) Below 5
( ) 5-10
( ) 11-15
( ) 16-20
( ) above 20
III. Questionnaire Proper

Direction: Please answer the following questions based on the degree. Please
check ( / ) your answer.
Legend: 4 to a great extent
3 to a moderate extent
2 to a slight extent
1 no extent at all
1. How does your convenience store estimate sales in terms of:

1.1. Territory
4
a. Having sufficient sales people in your territory
b. Knowing the number of population within the territory
c. Implementing policies in particular territory in estimating
sales.
d. Achieving appropriate balance among customer group.
e. Knowing the presence of competitors
1.2. Consumer Preference
79
COLLEGE OF BUSINESS
&ACCOUNTANCY
4
a. Buying habits of customer.

b. Conducting survey in order to estimate sales.
c. Identifying prior demand of customers.
d. Identifying personal factors such as age, lifestyle, etc. of each
consumer affect estimating the sales.
e. Knowing consumer's order of their preference.
1.3. Product Life Cycle

4
a. Comparing last year sales of a particular product.

b. Understanding the stages of your products according to
product life cycle.
c. Determining a good description of product if whether they
have stocks of product.
d. Requiring executive insights in order to know the stage of the
product.
e. Establishing relationships between the factors depends
directly on the maturity of a product in the market.
2. How does your convenience stores manage inventory in terms of:

2.1. Time and size of order
4
a. Using a system to keep track of the inventory.
b. Making reasonable estimates of inventory ordering cost
c. Using well created units of measuring like pcs, lbs, etc. will
make stock better to organize.
d. Updating the time and size of order daily.
80
COLLEGE OF BUSINESS
&ACCOUNTANCY
e. Controlling the time and size of order.
2.2. Demand of customers

4
a. Making reliable forecast of customers demand.

b. Considering customers opinion on the product.
c. Having a sales representative.
d. Making plan related in the number of their customers.
e. Setting up strategic goals for service level to create
customers demand.
2.3 Procedures adapted by the business
a. Establishing processing and recording procedure

b. Providing adequate facilities for handling storage of
inventory
c. Assigning appropriate number of employees
d. Conducting periodic inventory cost
e. Using of bar code technology/swiping
3. How does estimating sales affect your inventory management?
a. Identifying excess/old stock

b. Ensuring enough supply of goods
c. Knowing when and how much to purchase goods
d. Helping to decrease the cost of handling of goods
e. Maintaining logs of inventory movement into and out of the
81
COLLEGE OF BUSINESS
&ACCOUNTANCY
storerooms
APPENDIX D
LIST OF PARTICIPANTS
1. Seven Eleven 7/11 Alangilan
2. Seven Eleven 7/11 - P. Burgos
3. Seven Eleven 7/11 UB
4. Seven Eleven 7/11 - Terminal II
5. Seven Eleven 7/11 Pallocan
6. Seven Eleven 7/11 Balagtas
7. Seven Eleven 7/11 - P. Prieto
8. Quick Stop - Terminal III
9. Berbets Octane
10. Dreaming Forest
11. Petron Hilltop
12. Petron Calicanto
13. Petron Kumintang
14. Petron Diversion
15. Zedxian Fastbite
16. Lucky Eight
17. Petron Balagtas
18. Stuff Corner
19. Mini Stop Kumintang
20. Mini Stop Alangilan
21. Shell Pallocan
National Highway, Alangilan, Batangas City

P. Burgos St. Batangas City, Poblacion 1
UB Bldg. Hilltop Road, Kumintang Ibaba,
Batangas City
PPA Terminal II, Sta. Clara, Batangas City
Manuela Pastor Avenue, Pallocan West,
Batangas City
Balagtas, Batangas City
P. Prieto St. Batangas City Poblacion 5
Old PPA Bldg. Sta. Clara, Batangas City
Sitio Tacad, Libjo, Batangas City
Sitio Central, Libjo, Batangas City
Hilltop Rd, Kumintang Ibaba, Batangas City
Calicanto, Batangas City
Kumintang Ilaya, Batangas City
Diversion Rd. Bolbok, Batangas City
Pastor Avenue, Pallocan Kanluran,
Batangas City
Sitio Tacad, Libjo, Batangas City
Sitio 7, Balagtas, Batangas City
Diversion Rd. Balagtas, Batangas City
National Highway, Kumintang Ilaya,
Batangas City
National Highway, Alangilan, Batangas City
Pastor Avenue, Pallocan Kanluran,
Batangas City
82

COLLEGE OF BUSINESS
&ACCOUNTANCY
22. Shell Cuta
23. Gayuma Pharmacy & Gen. Mdse.
24. Top Star Pharmacy & Trading
DJPMM Access Rd. 2 Cuta, Batangas City

National Highway, Alangilan Batangas City
Gulod Labac, Batangas City
CURRICULUM VITAE
RHICA MAY H. DE TORRES
A-80 Poblacion, San Pascual, Batangas
rmhdetorres@gmail.com
+63915-914-9223
PERSONAL BACKGROUND
Age
Birthday
Birthplace
Civil Status
Nationality
Languages
:
:
:
:
:
:
19
May 4, 1996
Bauan, Batangas
Single
Filipino
Filipino, English
EDUCATIONAL BACKGROUND
Tertiary
University of Batangas
National Rd, Hilltop, KumintangIbaba, Batangas City
Bachelor of Science in Accountancy
2012 present
Secondary
St. Bridget College Batangas

M.H. Del Pilar St., Batangas City
2008 2012
Primary
San Pascual Central School

San Pascual, Batangas
2002 2008
With Honors
83

COLLEGE OF BUSINESS
&ACCOUNTANCY
SEMINARS ATTENDED:
1stYoung Entrepreneurs Summit
Theme: Start Small, Hitting it Big in Business
July 24, 2015 at University of Batangas Auditorium Batangas City
The World of Accountancy Profession: Be Aware, Be a CPA!
February 20, 2015 at University of Batangas Auditorium Batangas City
12th Business Lecture Series
Theme: Empowering Youth Entrepreneurs through Spirit, Intellect, Purpose
Basic Principles of Taxation and Tax Remedies
January 27, 2015 at University of Batangas Batangas City
Theme: Competency Requirements for Business Professionals and
Entrepreneurs Meeting the Challenges and Globalization
July 24, 2014 at University of Batangas Gymnasium Batangas City
2nd Leadership Encounter: Jesse M. Robredo Caravan of Good Governance
Asilish Asian Bridges Affiliate Orientation
February 28, 2014 at Unvrsity of Batangas Western Hall Batangas City
Theme: Unleashing Young Entrepreneurial Spirit: Innovate, Integrate, Motivate
Theme: Unleashing Excellence-Fad and Style Entanglement to Business
Operation
February 28, 2013 at University of Batangas Gymnasium Batangas City
ORGANIZATIONS:
84
COLLEGE OF BUSINESS
&ACCOUNTANCY
Junior Philippine Institute of Accountants

University of Batangas Batangas Chapter
June 18, 2012 Present
CURRICULUM VITAE
RHEALYN M. BUCAL
GuitnaTimbain, Calaca, Batangas
rhealynbucal@gmail.com
+63935-487-3303
PERSONAL BACKGROUND
Age
Birthday
Birthplace
Civil Status
Nationality
Languages
:
:
:
:
:
:
19
February 26, 1996
Calaca, Batangas
Single
Filipino
Filipino, English
Tertiary
2012 present
Secondary
Calaca Academy
Admana St. Calaca, Batangas
2008 2012
With Honors
Primary
Calaca Central School

85

COLLEGE OF BUSINESS
&ACCOUNTANCY
Admana St. Calaca, Batangas
2002 2008
SEMINARS ATTENDED:
February 28, 2014 at Unvrsity of Batangas Western Hall Batangas City
Operation
ORGANIZATIONS:
86
COLLEGE OF BUSINESS
&ACCOUNTANCY

CURRICULUM VITAE
KRIZZA MAE R.DE LEON
KumintangIbaba, Batangas City
krizzamaerdeleon@yahoo.com
+63905-865-8378
PERSONAL BACKGROUND
Age
Birthday
Birthplace
Civil Status
Nationality
Languages
:
:
:
:
:
:
19
March 20, 1996
Mamburao, Occidental Mindoro
Single
Filipino
Filipino, English
Tertiary
2012 Present
Secondary
Mamburao, Occidental Mindoro National high School

2008 2012
With Honors
Primary
Payompon Elementary School

87

COLLEGE OF BUSINESS
&ACCOUNTANCY
2002 2008
With Honors
SEMINARS ATTENDED:
February 28, 2014 at Unversity of Batangas Western Hall Batangas City
Operation
ORGANIZATIONS:
88
COLLEGE OF BUSINESS
&ACCOUNTANCY

Association of Student Assistant
University of Batangas- Batangas
November 2012 - Presen
CURRICULUM VITAE
RUSSEL BERCASIO
San Francisco, Mabini, Batangas
tmci_russel@yahoo.com
09479513201
PERSONAL BACKGROUND
Age
Birthday
Birthplace
Gender
Civil Status
Nationality
Languages
:
:
:
:
:
:
:
22
February 24, 1993
Paracale, Cams. Norte
Female
Single
Filipino
Filipino, English
Tertiary
Hilltop KumintangIbaba, Batangas City
Bachelor of Science in Business Administration- Accounting
Management
2011-present
Secondary
Anselmo A. Sandoval Memorial National High School

Mabini, Batangas
2007-2011
Valedictorian
Primary
Mainaga-San Francisco-Calamias Elementary School

Mabini Batangas
2011
89

COLLEGE OF BUSINESS
&ACCOUNTANCY
Salutatorian
SEMINARS ATTENDED
Operation
8th Business Lecture
Globally Focused Education for Globally Prepared Future Professionals
August 19, 2011 at University of Batangas Gymnasium Batangas City
ORGANIZATIONS:
2011 2013
Junior Philippine Association of Management Accountants
2015-Present
90
COLLEGE OF BUSINESS
&ACCOUNTANCY
91

5th Draft

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

5th Draft

Enviado por

Direitos autorais:

Formatos disponíveis

COLLEGE OF BUSINESS

Statement of the Problem

Scope, Delimitation and Limitation of the Study

Significance of the Study

How to Estimate Sales

Estimating Sales in Relation with Inventory Management

Synthesis of Reviewed Materials

Participants of the Study

Campuses: Hilltop MH del Pilar Pallocan East Pallocan West Lipa

Less than 1 year

Campuses: Hilltop MH del Pilar Pallocan East Pallocan West Lipa

Type of business ownership is classified as sole proprietorship, partnership,

Data Gathering Instrument

Data Gathering Procedure

Statistical Treatment of Data

1. Estimating Sales of Convenience Stores in Terms of Territory, Consumer Preference

2. Knowing the number of population within

Legend: Scale Range

consumer budget constraint.

3. Identifying prior demand of customers

Legend: Scale Range

2. Understanding the stages of your products

Establishing relationship between the factors depends directly on the

making reasonable estimates of inventory

2. Making reasonable estimates of inventory

4. Updating the time and size of order daily

Legend: Scale Range

To effectively manage the inventory one must have reasonable estimates of

2. Considering customers opinion on the

3. Having a sales representative

5. Setting up strategic goals for service level

Legend: Scale Range

2. Providing adequate facilities for handling

3. Assigning appropriate number of

4. Conducting periodic inventory cost

Procedures adapted by the business

Legend: Scale Range

3. Effect of Estimating Sales to Inventory Management of Convenience Stores in Batangas

Territory in inventory management is significant in terms of demand of customers

Product life cycle in inventory management is significant in terms of demand of

4. Guidelines in estimating sales to effectively manage inventory of convenience stores

To help owners and managers of convenience stores to estimate sales more

Guidelines to Effectively Estimate Sales of Convenience Stores

This chapter presents the summary, findings, conclusions and recommendations

1 Estimating Sales of Convenience Stores

the presence of competitors are considered in estimating sales in territory.

2 Inventory Management of Convenience Stores

http://ww2.cfo.com/growth-strategies/2011/10/three-tips-for-creating-a-reliable-demandforecast/. Retrieved on August 03, 2015

Very Truly Yours,

(Sgd)Dr. Jesus P. Briones

Very truly yours,

( ) 36-40 years old

Campuses: Hilltop MH del Pilar Pallocan East Pallocan West Lipa

Highest Educational Attainment:

II. Profile of the Business

Length of Business Operation:

III. Questionnaire Proper

1. How does your convenience store estimate sales in terms of:

a. Buying habits of customer.

1.3. Product Life Cycle

a. Comparing last year sales of a particular product.

2. How does your convenience stores manage inventory in terms of:

2.2. Demand of customers