Chapter 1

THE INFLUENCE OF INVENTORY CONTROL MANAGEMENT ON FINANCIAL
PERFORMANCE OF TOP LIFEGEAR MARKETING
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Inventory as a gathering of association resources where by the management become
concerned about the stock. Inventory alluded as a supply of materials that used to facilitate in
assembling of merchandise or to fulfill client needs. As indicated by Chitale A.K and Gupta R.C
(2014) in page 133 says "stock is characterized as whole of the estimation of crude materials,
fuel and greases, save parts, support consumable, semi prepared materials and completed
products, stock at a give purpose of time". So overseeing inventories is essential to association
since it help in legitimate arranging of the materials required in order to distinguish the hole
between the ideal and the real degree of materials, distribution of assets, buying, deals and work
of staff and everything worried to HR the executives all of which decreases on the expenses
brought about by the association in the creation offices for improved execution of the
association.
Some of money related foundations put more endeavors in real money disregard
overseeing inventories. Organization should safe monitors the association's stock to clear system
and guidelines to be grown in order to forestall any felt inventories. Effective control
management system empowers for association to meet client desire for item, minimization of
cost and expansion of benefit.

An inventory control management system is the blend of equipment and programming
that is innovation, cycles and techniques that help to screen and support of loaded items like
organization resources, crude materials, completed beneficial to definite buyers. A system in
stock incorporates standardized identifications, names or resources tag. In other hand inventory
control management system is otherwise called ”inventory control management”. As per Indira P
(2018) in page 69 says "inventory control management are innovation arrangements that
incorporate all parts of associations inventories assignments, including transporting, buying,
getting, distribution center stockpiling turnover, following and reordering".
In this manner inventory control management has impact in money related organization
performance.
Conceptual Framework of the Study
This study is anchored the concept of Meckrine Sabure (2020) who states that inventory
control management consists of planning on inventory and inventory control. Inventory planning
includes deciding when to arrange things, the amount to arrange, anticipating request and stock
renewal, stock data. Inventory control comprises dealing with the 3 inventories that are coming
up, realizing that items are available, amounts, cost and area.
On dependent variable, the study will expect that the influence of inventory management
system, information management system, and improved inventory and stores management
practices will influence financial performance in the organizaion.
Control management variables, for example, inventory monitoring and inventory
information system were included in the conceptual framework. Inventory control management
incorporates everyday development and assessment of the key presentation in inventory costs
and administration level which can guarantee great stock arranging. The influence of inventory
control management system enables management the correct data to decrease stock in time
henceforth improving authoritative financial performance.

Control Management Variables
Inventory control management in

monitoring and inventory
information management
Dependent variable Independent variable
Financial Performance
Inventory control management
Figure 1. Schematic Diagram of the Study

Statement of the Problem
It is essential to control and manage inventories proficiently and adequately which can
done by include different department in the i the organization, for example, buying, production,
sales and fund. The vast majority of monetary organizations confronting a test in inventory
control management system that influence performance which leads on deferral of
accomplishing its goal in various departments.
According to Gupta S & Starr M (2014) in page 135 says “many problems related to
inventory can be solved by using economic criteria in understanding cost structure that is
inventory cost”. Inventory involves inventory costs such as ordering costs, carrying cost and
shortage costs. Dinesh S (2017) in page 19 defined Carrying cost as a cost associated with
temporary storage of an item until it is sold, so it involves transfer of ordered materials from the
seller to the warehouse so insufficient carrying cost cause of shortage cost on performance of
adequate inventory in the organization. Ordering cost involves cost that associated with placing
an order for an item and receiving it into the inventory control management system. The problem
arises in organization on when and how often inventory to be ordered so as to maintain the right
level of raw material and finished product in a minimum costs.
Inventory control management system on financial organization facing some challenges
due to failure on balancing between excess inventory and under stocking which caused by poor
issuing of materials from store without purchase order from the a particular department. Excess
inventory referred to excess of demand of materials, which can result into destruction of
materials. Under stocking is way of maintain small number of inventory that has impacts towards
organization performance. Therefore poor inventory control management system it will difficult
in recording keeping for incoming and out coming on inventory in the organization.
However there is a little empirical research that clarifies inventory control management
system and its influence towards financial performance as whole information are needs to
understand it. Therefore the researcher chose this particular phenomenon with intention to
investigate the influence of inventory control management system on financial organization
performance.
Specifically, it sought to answer the following questions:
1. What is inventory control management systems used in top lifegear marketing?
2. What are the factors that affect inventory control management system in top life gear
marketing?
3. Is there any significant relationship between inventory control management system and
the financial performance of top lifegear marketing?
Assumption
The results when having inventory control management will increase the financial performance
of Top Lifegear Marketing.
Significances of the study
The recommendations may be useful to the academic, government and organization in inventory
control management system that will enables increasing on financial performance.
Academic benefits. The study is significant to academic areas such as in universities and
other academic institutions in which the researcher able to have practical training towards things
learning theoretically. It may also be a benefit to other researcher who wants to conduct the same
study by being provided with reference.
Government benefits. The study is significant to the government since it will make easy
for policy maker to issue policies which will enable both government sector and private sector to
acquire inventory control management system that will boost organizational financial
performance.
Organizational. benefits The study will be benefit to the organization after knowing the
importance of inventory control management system that will increase the financial performance.
Also will enable employees to evaluate themselves on the inventory control management system.
Scope and Limitation of the Study
This research will be conduct based on inventory control management system so to
investigate the influence of inventory control management system on financial performance of
top lifegear marketing. This study is limited to five years specifically from 2014.
Definition of Terms
Inventory. It includes the collection of finished materials used in production that hold by
organization.
Inventory control. It shows how much inventory you have at any one time and how to keep track
of it.
Inventory control system. It defined as the combination of hardware and software based tools for
tracking and inventory management.
Inventory management. It defined as process of efficiently overseeing the constant flow of units
into and out of an existing inventory.

ST. PAUL UNIVERSITY SURIGAO
Surigao City
COLLEGE OF BUSINESS AND TECHNOLOGY
THESIS SUBMISSION FORM
Chapter 1 Date Student’s Instructor’s

Submitted Topic/s Discussed/Concerns Raised Signature Signature
10/03/202
0
Chapter 2

Chapter 1

Uploaded by

Copyright:

Available Formats

Chapter 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 1

Uploaded by

Copyright:

Available Formats

THE INFLUENCE OF INVENTORY CONTROL MANAGEMENT ON FINANCIAL

PERFORMANCE OF TOP LIFEGEAR MARKETING

THE PROBLEM AND ITS BACKGROUND

Inventory as a gathering of association resources where by the management become

products, stock at a give purpose of time". So overseeing inventories is essential to association

cost and expansion of benefit.

organization resources, crude materials, completed beneficial to definite buyers. A system in

incorporate all parts of associations inventories assignments, including transporting, buying,

getting, distribution center stockpiling turnover, following and reordering".

practices will influence financial performance in the organizaion.

Control management variables, for example, inventory monitoring and inventory

henceforth improving authoritative financial performance.

Inventory control management in

Dependent variable Independent variable

Figure 1. Schematic Diagram of the Study

control management system that influence performance which leads on deferral of

accomplishing its goal in various departments.

level of raw material and finished product in a minimum costs.

Inventory control management system on financial organization facing some challenges

investigate the influence of inventory control management system on financial organization

Specifically, it sought to answer the following questions:

1. What is inventory control management systems used in top lifegear marketing?

the financial performance of top lifegear marketing?

control management system that will enables increasing on financial performance.

study by being provided with reference.

Scope and Limitation of the Study

This research will be conduct based on inventory control management system so to

investigate the influence of inventory control management system on financial performance of

tracking and inventory management.

into and out of an existing inventory.

THESIS SUBMISSION FORM

Chapter 1 Date Student’s Instructor’s

You might also like