Preliminaries

COLLEGE OF BUSINESS &ACCOUNTANCY

ACCEPTANCE AND APPROVAL SHEET

This thesis entitled “EFFECTS OF ESTIMATING SALES TO INVENTORY

MANAGEMENT OF CONVENIENCE STORES IN BATANGAS CITY”, prepared and

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

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

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

recommended for acceptance and approval.

________________________________DORINGER P. CABRERA, CPA, MBA

Adviser

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

Bachelor of Science in Accountancy.

_________________________________LILY MARLENE HERNANDEZ – BOHN

Dean

Thesis Defense Committee:

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


ACKNOWLEDGEMENT

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

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

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

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

research;

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

in the preliminary stages of the study and continuous encouragement;

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

support spiritually throughout writing the thesis;

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

time in answering the questionnaires given;

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

assisting and providing worthy books and literature; and

Lastly, to everyone who directly and indirectly have lent their support in this

study.

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DEDICATION

This Research Paper Is Lovingly

Dedicated To

The Lord Almighty

Our Respective Parents,

Siblings and Relatives

Friends

Without their love and support this project would not

Have been made possible

R. M. H. D. T.

R. M. B.

K. M. R. D. L.

R. B.

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ABSTRACT

Title : EFFECTS OF ESTIMATING SALES TO INVENTORY

MANAGEMENT OF CONVENIENCE STORES IN

BATANGAS CITY

Researchers : Rhica May H. De Torres

Rhealyn M. Bucal

Krizza Mae R. De Leon

Russel Bercasio

Type of Document : Unpublished Undergraduate Thesis

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

Accounting Management

School : University of BatangasHilltop, Batangas City

Number of Pages : 91+

Date Completed : August 2015

Thesis Adviser : Mr. Doringer P. Cabrera

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

management of convenience stores in Batangas City

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Specifically, this study sought answers to the following questions:

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

1.1. Territory;

1.2. Consumer preference, and

1.3. Product life cycle?

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

2.1. Time and size of order;

2.2. Demand of customers, and

2.3. Procedures adapted by the business?

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

convenience stores in Batangas City?

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

management of convenience stores in Batangas City?

The researchers applied the descriptive method of research to determine and

analyse 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.

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

participants and business and Pearson correlation for determining the hypothesis

formulated is accepted or rejected.

Findings

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

findings:

1. Estimating Sales of Convenience Stores

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

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

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

implementing policies in estimating sales, achieving appropriate balance among

customer group and knowing the presence of competitors are considered in estimating

sales in territory.

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

1.3 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

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the products in the market are considered in the estimating sales of the convenience

stores.

2. Inventory Management of Convenience Stores

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

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

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

making reasonable estimates of inventory ordering cost, using well-created units of

measuring, updating and controlling of the time and size of order are considered in the

inventory management of convenience stores.

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

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

mean. This means that the participants were able to set up goals for service level and

make reliable forecast of customer’s demand.

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

inventory management of the participants in terms of procedures adapted by the

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

procedure, providing adequate facilities for handling storage of inventory, assigning

appropriate employee, conducting periodic inventory cost, and using bar code of

technology.

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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

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.

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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 organization’s profit objectives,

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.

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http://www.business.vic.gov.au/money-profit-and-accounting/pricing/calculate-your-breakeven-point-margin-and-markup

http://www.business.vic.gov.au/money-profit-and-accounting/financial-management-set-up/How-to-choose-small-business-accounting-software


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 convenience stores in Batangas City.

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TABLE OF CONTENTS

Page

TITILE PAGE i

ACCEPTANCE AND APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

DEDICATION iv

ABSTRACT v

TABLE OF CONTENTS xi

LIST OF TABLES xiii

LIST OF FIGURES xiv

CHAPTER 1. PROBLEM AND ITS BACKGROUNDIntroduction 1Theoretical and Conceptual Framework 3Statement of the Problem 7Hypothesis 7Assumptions of the Study 8Scope, Delimitation and Limitation 8Significance of the Study 9Definition of Terms 10

CHAPTER 2. REVIEW OF RELATED LITERATURE AND STUDIES 12

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

CHAPTER 4. PRESENTATION, ANALYSIS AND INTERPRETATIONOF DATA 37

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CHAPTER 5. SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONSSummary 66Findings 67Conclusions 69Recommendations 70

BIBLIOGRAPHY 72

APPENDICES 76

CURRICULUM VITAE 84

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LIST OF TABLES

Table Page

1 Frequency & Percentage Distribution of the Participants as to Profile 29

2 Frequency & Percentage Distribution of the ParticipatingConvenience Stores as to Profile 31

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

39

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

Convenience Stores41

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

43

6 Weighted Mean and Verbal Interpretation of Time and size of order and its Effect on Inventory Management of Convenience Stores 46

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

48

8 Weighted Mean and Verbal Interpretation of Procedures adapted by the business of order and its Effect on Inventory Management of Convenience Stores 51

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

and Size of Order54

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

Demand of Customers56

11 Pearson Correlation and Verbal Interpretation of the Effect of Estimating Sales to Inventory Management in terms of Procedures adapted by Business 58

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LIST OF FIGURES

Figure Page

1 Conceptual Framework on Estimating Sales and It’s effect 4to Inventory Management

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LIST OF APPENDICES

Appendix Page

A Letter of Inquiry 73

B Letter of Request 74

C Questionnaire 75

D List of Participants 80

E Curriculum Vitae 81

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Documents

Preliminaries