Related Studies

Foreign

Current changes in inventory management consider the total logistics chain under the term
logistics management, place a greater emphasis on purchasing rather than producing in-house
and use more international sourcing. Changes to recording methods include the use of different
methods of information collection and processing, e.g. bar coding in retailing and manufacture
and electronic exchange of information. Control methods are more computer based and are
becoming part of increasingly integrated systems.

Bonney, M. (2016). Trends in inventory management. International Journal of Production

Economics, 35(1–3), 107–114. https://doi.org/10.1016/0925-5273(94)90070-1

Inventory management is a challenging problem area in supply chain management. Companies

need to have inventories in warehouses in order to fulfill customer demand, meanwhile these
inventories have holding costs and this is a frozen fund that can be lost. Therefore, the task of
inventory management is to find the quantity of inventories that will fulfil the demand, avoiding
overstocks. This paper presents a case study for the assembling company on inventory
management. It is proposed to use inventory management in order to decrease stock levels and
to apply an agent system for automation of inventory management processes.

Plinere, D. (2016). Case Study on Inventory Management Improvement | Plinere | Information

Technology and Management Science. https://itms-journals.rtu.lv/article/view/5082

In traditional supply chain inventory management, orders are the only information firms
exchange, but information technology now allows firms to share demand and inventory data
quickly and inexpensively. We study the value of sharing these data in a model with one
supplier, N identical retailers, and stationary stochastic consumer demand. There are inventory
holding costs and back-order penalty costs. We compare a traditional information policy that
does not use shared information with a full information policy that does exploit shared
information. In a numerical study we find that supply chain costs are 2.2% lower on average
with the full information policy than with the traditional information policy, and the maximum
difference is 12.1%. We also develop a simulation-based lower bound over all feasible policies.
The cost difference between the traditional information policy and the lower bound is an upper
bound on the value of information sharing: In the same study, that difference is 3.4% on
average, and no more than 13.8%. We contrast the value of information sharing with two other
benefits of information technology, faster and cheaper order processing, which lead to shorter
lead times and smaller batch sizes, respectively. In our sample, cutting lead times nearly in half
reduces costs by 21% on average, and cutting batches in half reduces costs by 22% on
average.

Gérard P. Cachon, Marshall Fisher, (2017) Supply Chain Inventory Management and the Value
of Shared Information. Management Science 46(8):1032-1048.
https://doi.org/10.1287/mnsc.46.8.1032.12029

Two major themes are found to emerge from logistics research focused on inventory
management. First, logistics researchers have focused considerable attention on integrating
traditional logistics decisions, such as transportation and warehousing, with inventory
management decisions, using traditional inventory control models. Second, logistics
researchers have more recently focused on examining inventory management through
collaborative models.

Williams, B.D. and Tokar, T. (2018), "A review of inventory management research in major
logistics journals: Themes and future directions", The International Journal of Logistics
Management, Vol. 19 No. 2, pp. 212-232. https://doi.org/10.1108/09574090810895960

The definition of inventory and various types of inventories – raw materials, finished goods,
in-process inventory, MRO inventory, etc. – are outlined. The need to keep inventory and the
functions of inventory as a decoupling agent to enable various subsystems in a supply chain to
be decoupled are described. The inventory-related cost parameters are listed along with
methods of estimating these. Other situational parameters like demand and lead times also
need to be estimated. Before an inventory model is employed for optimal operation of the
inventory system, an appropriate inventory policy has to be selected. Three types of inventory
policies are described, and their relative strengths and weaknesses are discussed. A taxonomy
of inventory models is presented to give an overview of a plethora of inventory models available
in inventory management literature. However, the right choice of the inventory model is crucial
for the success of inventory management.

Vrat, P. (2019). Basic Concepts in Inventory Management. In: Materials Management. Springer
Texts in Business and Economics. Springer, New Delhi.
https://doi.org/10.1007/978-81-322-1970-5_2

Local

A system study was conducted on the warehouse and inventory management of Pepsi Cola
Products Philippines, Inc. PCPPI is a company that manufactures, sells, and distributes soft
drinks in the Philippines. The study focuses on the inbound and outbound operations,
warehousing, and inventory system of the three warehouses in Muntinlupa. The data used in
this study is from January - December 2016. Based on the company's specific goals and key
performance indicators, the warehouses were evaluated to determine its strengths,
weaknesses, opportunities and threats. After which, a WOT-SURG analysis was conducted to
determine the problem with the highest priority. It was determined that PCPPI's problem is the
average order fill rate for modern trade operations in 2016 is 73.44%, which deviates from the
target by 16.56%, incurring an opportunity cost of Php26,226,992.49.

The causes of the problems were identified using the why why analysis. It was found that the
root causes of the problem were delivery time being affected by truck ban and traffic, 15% of the
products stored were slow moving, wrong product placement, and wrong recorded product
quantity. Possible solutions to reduce opportunity lost were generated and assessed through a
Kepner-Tregoe decision analysis, after which six alternatives were chosen. Alternative solutions
incorporated in the proposed system included renting additional 8-bay Hino FGIJ trucks,
standardizing truck delivery scheduling and routing, restructuring, stock placement to suit retail
habits of the modern trade operations, introducing a monthly forecasting function in the
warehouse, creating a product placement form for forklift operators and implementing inventory
updates every shift and improve inventory visibility by using a web-based spreadsheet.

Cruz-am, F., Lim, A., Tan, A., & Seva, Rosemary, panel chair. (2017). A system study on the
warehouse and inventory management of Pepsi-Cola Products Philippines, Inc.. Retrieved from
https://animorepository.dlsu.edu.ph/etd_bachelors/9136

A survey of marketing executives within randomly selected, major firms in the Philippines
investigates firms′ marketing actions in response to stagflation caused by the 1990 Persian Gulf
crisis. A central premiss is that there will be differences in sensitivity to macroeconomic
conditions between industry sectors. Results show that the manufacturing sector redirects
pricing, product and research and development strategies more extensively than
non‐manufacturers. These differences may be explained by the extent to which the industry
sector is capital‐intensive in its formation and operation. Empirically demonstrates the effects of
macroeconomic conditions on firms′ marketing practices and the relevance of the stagflation
paradigm outside the United States.

Huszagh, S.M., Roxas, J.P. and Keck, K.L. (2017), "Marketing Practices in the Changing
Philippine Macroeconomic Environment", International Marketing Review, Vol. 9 No. 1.
https://doi.org/10.1108/02651339210009261

The study investigates the relationship between inventory management practices and service
delivery. The study participants were the 16 healthcare facilities in Ilocos Norte and 80 patients,
and they were chosen using a convenience sampling technique. The research used a
quantitative research design and a casual research approach to measure the degree of
relationship between the independent and dependent variables. Based on the findings of the
study, there were five inventory management practices observed for the study—pharmacy
premises and storage, drug information, safety and security, personnel and stock control, and
monitoring. On the other hand, as service quality, hospitals have four categories. These are
hospital admissions, care and treatment, hospital environment and facilities, and hospital
discharge. Personnel and stock control and monitoring are significantly correlated to service
quality Implications, conclusions, and recommendations were also provided in the study.

S Parilla, E., Evangelista, J., Aurelio, R., & Bullalayao, C. (2022). Inventory Management
Practices and Service Delivery of Healthcare Facilities in Ilocos Norte Philippines . Logistic and
Operation Management Research (LOMR), 1(1), 16–33. https://doi.org/10.31098/lomr.v1i1.919
The main purpose of this study is to assess the supply chain management practices of ESCO
Philippines Inc. This study aimed to investigate and present the relationship of the supply chain
management practices in terms of procurement, warehousing, and transportation activity.
Specifically, the study sought to determine practices being implemented in the entire supply
chain of the company and propose strategic actions based on the findings of the study that may
contribute to the operational success of their supply chain. In this study, the descriptive research
method was used to define ESCO Philippines Inc.’s current supply chain management whereas
adopted and modified survey questionnaires from previous related studies were used to gather
data from a total of 64 respondents coming from the supply chain department. The findings
revealed that warehousing management got the lowest composite mean among the three
practices being evaluated and there was a positive relationship among the supply chain
practices. The results also showed a Medium Correlation between the variables. This study
solely focused on supply chain practices that were being implemented in ESCO Philippines Inc.
which falls under the Retail Industry and therefore results should be cautiously extended to
other companies within the same industry for future references.

Catral, J. M. A., Fadriquel, D. W. R., Macalalad, K. J. P., Peña, R. K. E., Perez, L. C. T.,
Rosales, Q. R. A., & Encio, H. A. (2022). Supply Chain Management Practices of ESCO
Philippines Inc. Asia Pacific Journal of Academic Research in Business Administration, 8(1).

The main objective of this study was to determine the level of implementation of inventory
control management of RGPI as assessed by sales executives and the level of repeat
purchases on products of RGPI to its customers. The proposed policy reformulation was the
output of the study. This study followed the descriptive correlational research design. Through
simple random sampling, the respondents of the study were 42 sales executives of RGPI. The
researcher made a survey instrument
and was used for data gathering. Using the 4-point Likert Scale and simple mean, the level of
implementation on RGPI inventory control management as assessed by sales executives in
terms of 4Ps, was fully implemented while the level of repeat purchases on RGPI of products to
its customers was always to repeat purchase. Through the Pearson-r correlation coefficient,
findings revealed that there was a significant
relationship. Since both had significant relationships, regression analysis was applied to test if
singly or in combination the level of implementation on inventory control management
significantly impacted repeat purchases on products of RGPI. Based on the findings, promotion
significantly impacted the level of repeat purchases on products of RGPI by 27.4%.
The proposed policy formulation, based on the study's findings and intended to improve current
processes will be presented to RGPI's top management. Therefore, the success of inventory
control management implementation was through efforts from all departments, as well as,
collaboration with customers to improve product handling and raise awareness about the
importance of inventory management.

Rosario, J. M. (2022) Implementation of Inventory Control Management and Repeat Purchase

in Right Goods Philippines Incorporated: Inputs to Policy Reformulation.