Availability Cookery Tools and Ingredients of Renaissance School of Science

and Technology: an Inventory Analysis

A Research Paper

Presented To

The Faculty of the Senior High School

Renaissance School of Science and Technology

Morong, Rizal

In Partial Fulfillment

Of the Requirements for

Practical Research 2

Hermocilla, Mary Cyndelle M.

Ortanez, Krisha G.
Malto, Romela D.

2018
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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

This chapter presents the background of the study, Theoretical

framework and conceptual framework, statement of the problem, hypothesis,

assumption, scope and limitation of the study and definition of terms.

INTRODUCTION

Inventory management is one of the important key activities of business

logistics. Because of its role in business organisations, Schonsleben (2000)

adds that inventory is one of the most important instruments of logistics

planning and control. While inventory on work in process is linked to the

production process, physical inventory on stock or in buffer storage is

unnecessary from the standpoint of added value and is considered as waste of

time and money (tied-up capital)..

Bowers ox, Closes and Cooper (2009) are of the opinion that inventory

typically represents the second largest component of logistics cost next to

transportation. The risks associated with holding inventory increase as products

move down the supply chain closer to the customer because the potential of

having the product in the wrong place or form increases and costs have been

incurred to move the product down the channel. In addition to the risk of lost

sales due to stock outs because adequate inventory is not available, other risks
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include obsolescence, pilferage and damage.

According to Hill (2008) inventory is a significant asset in most

organizations. Its effective management, therefore, is a key task within the

auspices of operations. But controlling inventory is far from easy. It involves a

complex set of decisions due to the many forms inventory takes and functions it

provide. In addition, inventories are the result of functional policies within an

organization as well as the short and long term decisions in purchasing,

operations and sales. The optimal management of inventories is a primary

objective for all the firms manufacturing make to stock finished goods. As a

matter of fact, inventories have important implications for both the financial and

the economic performance of the company, therefore it is widely acknowledged

that an optimal inventory management policy allows companies to achieve

higher profitability levels. In general terms, inventory management policies

should be aimed at lowering the holding costs through higher inventory rotation,

but without triggering substantial stock outs and backorders, caused by demand

peaks and / or lead time delays (Bartolome and Rizzio 2002:1-2). As all

organizations are concerned with inventory management, a particular accent

has to be put to it. A sane inventory management implies the coordination of

strategic functions (production, finance, and marketing) of the organization in

order to reach objectives. The achievement of any organization’s objectives is

linked to the relationships of functional goals. That’s the reason why strategic

policies related to inventory management have to be arrested or conceived in

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order to achieve the organizational goals. Because, failure to that, an

organization will grind to a halt.

In Renaissance School of Science and Technology (RSST), inventory

management is not practiced most especially in the cooking tools and

ingredients that are being used by the Cookery Students. Thus, in this premise

that this study is conducted to know the Sufficiency of available cookery tools

and ingredients of Renaissance School of Science and Technology: An

Inventory Analysis.
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Figure 1

Map of the RSST

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Setting of the Study

The study was conducted in Renaissance School of Science &

Technology, RSST (Formerly The PRISMS). It is the product of years of work,

study, planning and experience by many individuals. The idea to create a

quality preparatory, elementary, secondary and Technical Vocational Two years

Ladderized Courses in Morong, Rizal began as a response to the community’s

increasing demand for quality education.

The school is now offering Senior High School as part of their course

offerings. One of the strands there is Cookery wherein students are trained to

cook and do hotel services, Thus, acquisition of supplies and materials are

being made.

Theoretical Framework

The study is anchored on Stochastic Inventory Theory which states that

Inventory theory deals with the management of stock levels of goods, with the

intent of effectively meeting demands for those goods. We say the demands for

goods are made by buyers and are met by sellers, regardless of whether

monetary exchange is involved. Inventory of a good that is physically available

is on hand stock. Demands for a quantity of a good are considered to be met

when that quantity is physically transferred, out of the units on hand to the

buyer. Shortages are demands that are not met immediately. Shortages are
 7

backorders if the buyers are willing to wait, and lost sales if not. Backorders are

also called backlogged demand and backlogs. From time to time, the inventory

manager may choose to place an order for additional quantities of the good to

replenish the stock on hand. An order, for the order quantity, may be placed on

an outside supplier or on an internal production facility, in which case the order

quantity is a run, batch, and/or lot of the product. The order lead-time is the

elapsed time from the moment an order is placed until the moment the quantity

ordered is received (added to the stock on hand).

That definition is purposefully vague, because of the possibility that

portions of an order may be delivered at different points in time. Quantities of

the good that have been ordered (by the inventory manager) but not yet

received are on order. System stock, also called inventory position, is the sum

of stock on hand plus on order minus backorders. It represents the amount that

is available to meet future demands without placing further orders.

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CONCEPTUAL FRAMEWORK

INPUT PROCESS

OUTPUT

1. Are the equipment and

the facilities available in
laboratory properly Collecting data,
arranged and installed interviews, and
appropriately?
evaluation through the Determined,
distribution of Sufficiency of
2. Inquiries and borrowing
process of equipment in questionnaires/checkli available cookery tools
the laboratory given st, analysis and and ingredients of
accurately and
interpretation of Renaissance school of
appropriately to the science and
Culinary students ? gathered data through
appropriate statistical technology; an
3. Are Culinary students of
formulas. inventory analysis.
RSST feel contented to
the school services they
receive?

FEEDBACK

FIGURE 1

Conceptual model showing Sufficiency of available cookery tools and

ingredients of Renaissance school of science and technology; an inventory
analysis.
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STATEMENT OF THE PROBLEM

The study will attempt to discover the Sufficiency of available cookery

tools and ingredients of Renaissance School of Science and Technology and its

implication to come up with an Inventory Analysis.

Specifically it aims to answer the following:

1. Are the equipment and the facilities available in laboratory properly arranged
and installed appropriately?

2. Inquiries and borrowing process of equipment in the laboratory given

accurately and appropriately to the Culinary students ?

3. Are Culinary students of RSST feel contented to the school services they
receive?

SCOPE AND LIMITATION

This study is limited only on the Availability of available cookery tools and

ingredients of Renaissance School of Science and Technology for the year

2018-2019 and its implication to come up with an Inventory Analysis.

SIGNIFICANCE OF THE STUDY

This study will be significant to the following:

Cookery Coordinator. The Cookery coordinator will be able to evaluate

the sufficiency of available cookery tools and ingredients using the output of this

study.
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Program Coordinator. The program coordinator will be able to wisely

plan the level of sufficiency of available cookery tools and ingredients

Cookery Students. The output will allow the students to be aware about

the level of sufficiency of available cookery tools and ingredients

Future Researchers. The future researchers will be able to use this

study as their reference for their own investigatory endeavor.

Definition of Terms

Cookery Tools – tools used in cooking

Ingredients - ingredient is a substance that forms part of a mixture (in a general

sense).

Sufficiency - an adequate amount of something, especially of something

essential.

Inventory - a complete list of items such as property, goods in stock, or the

contents of a building
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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the review of related literature and research

studies which provided a basis for the present study.

Foreign Literature

Inventory Systems Summary

According to the U.S. Small Business Administration, “Inventory refers to

stocks of anything necessary to do business” (U.S. Small Business

Administration, 2010) The U.S. Small Business Administration publication

describes what constitutes successful inventory management balancing cost

versus benefits of inventory, including Maintaining a wide assortment without

spreading the rapidly moving items too thin, Increasing inventory turnover

without sacrificing service, Keeping stock low without sacrificing performance,

Obtaining lower prices by making volume purchases, Maintaining an adequate

inventory without an excess of obsolute items.

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Wal-Mart Inventory System

Wal-Mart runs its stores on a perpetual inventory system. This system

records the quantity of items sold as items are purchased. The computer

system at Wal-Mart constantly keeps up with additions or deductions from

inventory and tells management what items are on hand. The organization

also conducts counts of employee manual counts of inventory periodically.

When an item arrives at the Wal-Mart distribution center it is scanned into the

inventory system. When the items are purchased by the consumer, the point-

of-sale system reduces the inventory from that purchase. According to Wal-

Mart’s Gail Lavielle, a leaner inventory will help clear out store clutter and help

Wal-Mart focus on specific brands and products that consumers want (The

Associated Press, 2006).

(Hinsdale: Holt, Richard and Winston Sounders College Publishing, 2000)

According to Mr.Eugene F. Brigman, Fundamentals of Financial

Management, 5th ed., Companies are increasingly employing Inventory

System. A computer start with an inventory counts in memory. Withdrawals are

recorded by the computer as they are made, and the inventory balance is

constantly revised. When the recorded point is reached, the computer

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automatically places an order, when this new order is received, the recorded

balance is increased. Retail stores have carried this system quite far, each

item has a magnetic codes, and as on item is checked out, it passes over an

electronic reader, which then adjusts the computers inventory balance, at the

same time the price is fed to cash register tape. When the balance drops to the

recorder point, an order is place. The researcher aim to develop a automated

inventory system which is technically, operationally, and economically. The

method used by the researcher to develop a automated inventory system is

Descriptive Method. The researcher conduct several interviews in order to

gather information about the present existing conditions of the inventory

system, knowing its problems and enhancing it by developing an automated

inventory system. Questionnaires were also distributed to all interviewees for

additional information. Using the descriptive method, the researchers also

observe the functionality of the present inventory system, which help them

discover that Electronic Data Processing is Advantageous than other.

Malcolm E. White Published at 2003; Merchandising means selling

products to retail customers. Merchandisers, also called retailers, buy products

from wholesalers and manufacturers, add a mark-up or gross profit amount, and

sell the products to consumers at a higher price than what they paid. When you

go to the mall, all the stores there are retailers, and you are a retail customer.

Retailers deal with an inventory, all the goods (products) they have for sale.

They account for inventory purchases and sales in one of two ways. Periodic
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and Perpetual. As the names suggest these methods refer to how often the

inventory account balances are updated.

Source: Online Article (http://www.middlecity.com/ch06.shtml)

Companies need Inventory System

According to Eugene F. Brigman, in the book of Fundamentals of

Financial Management published at year 2000 in the publishing company of

Holt, Richard and Winston Sounders College Publishing; Companies are

increasingly employing Inventory System. A computer start with an inventory

counts in memory. Withdrawals are recorded by the computer as they are

made, and the inventory balance is constantly revised. When the recorded point

is reached, the computer automatically places an order, when this new order is

received, the recorded balance is increased. Retail stores have carried this

system quite far, each item has a magnetic codes, and as on item is checked

out, and it passes over an electronic reader, which then adjusts the computers

inventory balance, at the same time the price is fed to cash register tape.

Inventory System Consist

An inventory control system is used in many warehouses to track the

location, quantity, and status of goods that are to be sold. Shipping and
 15

receiving of products is scheduled by an inventory control system. Inventory

control uses barcodes and RFID tags to track specific items. An audit, or a

physical count of inventory, is used to find out how many items are in an

inventory. Inventory taking is often required in order to get an accurate count for

accounting valuation purposes. Some inventory items have barcodes attached

to them or imprinted on them. These barcodes can be read during an audit by

barcode reading devices.

Source: Online Article (http://www.nationalbarcode.com/articles/inventory-

control-system.htm)

Steps for Inventory Management

This section of the paper looks at fundamental definitions and

explanations relating to Inventory Control, Management and Planning. Typical

conflicts within the organization that may affect inventory and what can be done

to resolve and avoid these.

According to article of Dr Geoff Relph, Witek Brzeski and Gail Bradbear,

published at year 2003; A simple stock classification method is discussed that

gives details about the ABC technique, Pareto distribution and takes a look into

further class level and part level analysis. There is a worked example of an ABC

classification with valuable information about creating alternative scenarios and

varying parameters for class boundaries and order frequency per class. The

results are shown in a series of statistical tables.

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Source: Online Article (http://www.inventorymatters.co.uk/portfolio/the-first-

steps-to-inventory management?type=publication)

Advantages of Inventory System

According to Kj Henderson, they have a three major advantages by using

of inventory system these are (Time savings, Accuracy, and Consistency) which

helps a lot for a bussiness man to increase the sales of their business.

 Time Savings

As the old saying goes, “time is money”. The amount of time that

can be saved by a business is, perhaps, the biggest benefit of using a

computerized inventory system. A great example of this benefit is the

retail industry. In cases where a shop maintains all data manually, its

manager must reconcile each sales receipt with every piece of physical

inventory. Depending on the size of the establishment and how many

different products are sold, this can be a daunting and time consuming

task. If that same store, however, used a computerized point of sale,

POS, system, the master inventory list would be updated electronically

each time a sale is made. The only thing a manager would have to do

each day is print out the report highlighting the inventory to be restocked.

 Accuracy

An additional benefit of using a computerized inventory system is

the accuracy it ensures. Eighteenth century English poet Alexander Pope

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is often quoted as having said, “To error is human.” When an inventory

list is maintained by hand, the margin of error widens with each update. If

one mathematical calculation is wrong or one typo is made, disaster may

occur. For instance, if a clerk accidentally adds a zero to the end of a

purchase order, a business could potentially end up paying for 10,000

units of merchandise as opposed to the 1,000 that is actually needed.

 Consistency

A small business operates most efficiently when its processes are

executed in a consistent manner. By using a computerized inventory

system, a business owner can ensures that all orders, reports and other

documents relating to inventory are uniform in their presentation,

regardless of who has created them. This will allow ease of reading. In

addition, uniformity creates a professional appearance, which can go a

long way to impress associates, such as potential investors.

Source: Online Article (http://smallbusiness.chron.com/benefits-using-

computerized-inventory-system-2044.html)

Disadvantages of Inventory System

According to Neil Kokemuller, by using of Inventory system they have

some disadvantages by using of this. These are (Customer Needs, Inventory

Costs, Coordination, and Risks).

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 Customer Needs

Balancing the goals of avoiding stock outs while minimizing inventory

costs is at the heart of just-in-time inventory. One of the main benefits of

automated and efficient inventory replenishment systems is that you can

quickly respond to reduced inventory levels. Companies are now

equipped to pull back on stock in a given product category and ramp up

inventory in another as customer needs and interests change.

 Inventory Costs

Minimization of inventory management costs is a primary driver

and benefit of just-in-time practices. Inventory management has costs,

and when you reduce the amount of holding space and staff required

with JIT, the company can invest the savings in business growth and

other opportunities, points out the Accounting for Management website.

You also have less likelihood of throwing out product that gets old or

expires, meaning reduced waste.

 Coordination

A disadvantage of managing a just-in-time inventory system is that

it requires significant coordination between retailers and suppliers in the

distribution channel. Retailers often put major trust in suppliers by

syncing their computer systems with suppliers so they can more directly

monitor inventory levels at stores or in distribution centres to initiate rapid

response to low stock levels. This usually means build-up of technology

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infrastructure, which is costly. This coordinated effort is more involving on

the whole than less time intensive inventory management systems.

 Risks

Just-in-time inventory is not without risks. By nature of what it is,

companies using JIT intend to walk a fine line between having too much

and too little inventory. If company buyers fail to adjust quickly to

increased demand or if suppliers have distribution problems, the

business risks upsetting customers with stock outs. If buyers over

compensate and buy extra inventory to avoid stock outs, the company

could experience higher inventory costs and the potential for waste.

Source: Online Article (http://smallbusiness.chron.com/advantages-

disadvantages-justintime-inventory-21407.html)

Professional Inventory Management

According to Dr Geoff Relph, Witek Brzeski and Gail Bradbear; Inventory

can be call as Professional Inventory Management if they meet the terms;

(Good Inventory, Extending Stock Classification for Greater Control, A worked

example showing the impact of moving from 3 to 6 classes, Buffer Stock

Methodology, Simple buffer stock, Stochastic buffer stock, A worked example

showing the impact of simple safety stock and stochastic safety stock.)
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Source: Online Article (http://www.inventorymatters.co.uk/portfolio/professional-

inventory-management?type=publication)

High-level Inventory Management

According to Johnson and Kaplan author of the book of Relevance Lost,

(Book published year 1997; Publishing Company, Harvard Business School

Press) It seems that around 1880 there was a change in manufacturing practice

from companies with relatively homogeneous lines of products to horizontally

integrated companies with unprecedented diversity in processes and products.

Those companies (especially in metalworking) attempted to achieve success

through economies of scope - the gains of jointly producing two or more

products in one facility. The managers now needed information on the effect of

product-mix decisions on overall profits and therefore needed accurate product-

cost information. A variety of attempts to achieve this were unsuccessful due to

the huge overhead of the information processing of the time. However, the

burgeoning need for financial reporting after 1900 created unavoidable pressure

for financial accounting of stock and the management need to cost manage

products became overshadowed. In particular, it was the need for audited

accounts that sealed the fate of managerial cost accounting. The dominance of

financial reporting accounting over management accounting remains to this day

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with few exceptions, and the financial reporting definitions of 'cost' have

distorted effective management 'cost' accounting since that time. This is

particularly true of inventory. Hence, high-level financial inventory has these two

basic formulas, which relate to the accounting period. (First the Cost

of Beginning Inventory at the start of the period + inventory purchases within the

period + cost of production within the period = cost of goods available. Second

the Cost of goods available − cost of ending inventory at the end of the period

= cost of goods sold). The benefit of these formulas is that the first absorbs all

overheads of production and raw material costs into a value of inventory for

reporting. The second formula then creates the new start point for the next

period and gives a figure to be subtracted from the sales price to determine

some form of sales-margin figure.

Manufacturing management is more interested in inventory turnover

ratio or average days to sell inventory since it tells them something about

relative inventory levels. (Inventory turnover ratio (also known as inventory

turns) = cost of goods sold / Average and Inventory = Cost of Goods Sold /

((Beginning Inventory + Ending Inventory) / 2)) and its inverse Average Days to

Sell Inventory = Number of Days a Year / Inventory Turnover Ratio = 365 days

a year / Inventory Turnover Ratio.This ratio estimates how many times the

inventory turns over a year. This number tells how much cash/goods are tied up

waiting for the process and is a critical measure of process reliability and
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effectiveness. So a factory with two inventory turns has six months stock on

hand, which is generally not a good figure (depending upon the industry),

whereas a factory that moves from six turns to twelve turns has probably

improved effectiveness by 100%. This improvement will have some negative

results in the financial reporting, since the 'value' now stored in the factory as

inventory is reduced.

While these accounting measures of inventory are very useful because

of their simplicity, they are also fraught with the danger of their own

assumptions. There are, in fact, so many things that can vary hidden

under this appearance of simplicity that a variety of 'adjusting'

assumptions may be used. These include: (Specific Identification,

Weighted Average Cost, Moving-Average Cost, FIFO and LIFO).

Inventory Turn is a financial accounting tool for evaluating inventory and

it is not necessarily a management tool. Inventory management should be

forward looking. The methodology applied is based on historical cost of goods

sold. The ratio may not be able to reflect the usability of future production

demand, as well as customer demand.

Source: Book (Relevance Lost, p. 126)

Introduction to model of the Perishable Inventory

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According to the book of Timothy S. Vaughan, that published in year

1994 (Book of Book (A model of the Perishable Inventory System with referenct

to consumer-realized product expiration; Publishing Company, Operational

Research Society Ltd). The introduction of unit perishability has significant

effect on inventory policy for a large number of commodities. A significant

amount of research has been presented which addresses the trade-offs

between ordering, carrying, shortage, and outdate costs for perishable

inventory. A model of the perishable inventory system which incorporates the

effects of consumer-realized product expiration. This model represents a

synthesis of two distinct directions in the perishable inventory literature, and

addresses the simultaneous determination of inventory ordering and outdate

policy for a perishable item with random demand and random lifetime.

Source: Book (A model of the Perishable Inventory System with referenct to

consumer-realized product expiration, Vol. 45, No. 5, p. 519)

The Advantages of a Computerized Inventory Management System

According to Bonnie Conrad, Computerized Inventory Management

System give advantage to the business like first, the Speed and Efficiency. A
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computerized inventory management system makes everything from inputting

information to taking inventory easier. Doing a hand count of inventory can take

days, but with a computerized inventory management system, the same

process can be done in a matter of hours. Second the Document Generation,

once the computerized inventory management system is in place, managers

and workers can use it to automatically generate all kinds of documents, from

purchase orders and checks to invoices and account statements. Managers can

also use the system to automatically order products when they run low. Third,

the Timely Data with a manual system, the data is only as accurate and up to

date as the last hand count. With a computerized inventory management

system, the management team can pull a report and instantly see how many

units are on the floor, how many have sold and which products are selling the

fastest.

Source: Online Article (http://smallbusiness.chron.com/advantages-

disadvantages-computerized-inventory-management-system-22513.htmll)

Disadvantages of a Computerized Inventory Management System

According to the article of Johnson Braham if they have advanatages by

using of Inventory System, they have also Disadvantages in using a

computerized Inventory. First the Reliance on Technology, with a computerized

inventory management system, the company is at the mercy of its technology.

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Outside factors like a power failure or the loss of Internet or network

connectivity can render the system temporarily useless. Second the Accuracy

Issues, a computerized system alone does not ensure accuracy, and the

inventory data is only as good as the data entry that created it. Companies that

plan to use a computerized inventory management system need to have a

system in place to validate their data and check the numbers reported by the

system. A select hand count or targeted audit may be necessary to ensure the

integrity of the system. Third the Risk of Fraud, any computerized system

carries the risk of intrusion, and with a computerized inventory management

system comes the risk of fraud as well. A dishonest vendor could hack the

system to receive payment for products never delivered, or a dishonest

employee could redirect checks to themselves.

Source: Online Article (http://smallbusiness.chron.com/advantages-

disadvantages-computerized-inventory-management-system-22513.html)

Types of Inventory Management Systems

According to Kenneth Hamlett they have different types of Inventory

Managment systems, first the Manual which is many small business owners,

especially if the business has very few products, keep track of inventory

manually. The easiest way to perform manual inventory management is to use

a spreadsheet. For example, a small bakery might use a spreadsheet to keep

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track of inventory purchases and usage. The owner can also set up the

spreadsheet to calculate when ingredients need to be reordered. At the start of

each week, the owner manually counts the raw ingredients and components

she has on hand. She enters these values in the spreadsheet. She also enters

her expected usage based on existing orders. Using the appropriate

spreadsheet formulas, she determines if she has enough materials for the week

or if she’ll need to purchase more. Manual systems allow the small business

owner to manage inventory with very little investment in systems or training.

Maintaining data integrity is a major downside to managing inventory using a

spreadsheet. A single data entry or formula error can cause major inaccuracies

in the data output. Second the Barcode, Inventory management systems that

use barcode technology increase the accuracy and efficiency of managing

inventories. All major retailers use barcode technology as part of an overall

inventory management program. Barcode technology facilitates the movement

of inventory within the confines of the warehouse (from one location to another)

or from the supplier to the warehouse (receiving) and from the warehouse to the

customer (picking, packing and shipping). Third the Radio Frequency

Identification, Companies that use RFID typically move thousands of pieces of

inventory through their doors. RFID uses two types of technology to manage

inventory movements--active and passive technology. Active RFID technology

uses fixed tag readers assigned throughout a warehouse. Anytime an item with

an RFID tag passes the reader, the movement of the item is recorded in the
 27

inventory management software. Active systems work best in environments that

require real-time inventory tracking or where inventory security problems exist.

Passive RFID technology requires the use of handheld readers to monitor

inventory movement. Just as in an active system, once an inventory item’s tag

is read, the movement data are transmitted to the company’s inventory

management software. Because RFID technology has a reading range of up to

40 feet using passive technology and 300 feet using active technology, it greatly

increases the accuracy of moving inventory around a warehouse.

Source: Online Article (http://smallbusiness.chron.com/types-inventory-

management-systems-2195.html)
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According to the article of Pete Abilla that published in Novemver 16,

2011; they tackle the different cause of using inventory system. First to Stop

products from spoiling, if you have too many products in your warehouse, you

increase the risk that they will become obsolete, damaged, spoiled or stolen

before you can sell them all. Depending on which industry you’re in, you’re

probably more worried about some of these risks than others. For example, if

you’re in the technology industry, you don’t want your expensive products to

become outdated, damaged or stolen, but you probably don’t care about their

freshness date. Food producers, on the other hand, put product spoilage high

on the list of inventory management concerns. Second to Stop paying hidden

costs, having too much inventory doesn’t just increase your risk of paying more

in the future; it costs you more money all the time. Where will you store the

extra inventory? You may need to buy a larger warehouse than you really need

or rent trailers if your warehouse isn’t big enough. Plus, you have to provide

security to prevent theft. And don’t forget about the money that’s tied up in

inventory that you could have used to hire personnel or grow your business in

other ways. Third to Stop disappointing customers, on the other end of the

inventory spectrum, if you have too few products in your warehouse, you face a

whole other set of risks. Your customers don’t want to wait too long to get their

orders shipped to them. So if you run out of the products they’re looking for or if

your picking, packing and shipping processes are too slow, you could drive

customers away. Fourth to Stop wasting time, inventory management can be

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time-consuming, especially if you’re trying to do it by hand or in Excel

spreadsheets. Speed is everything in business. How fast you reorder products,

ship customer orders and update your inventory records could make or break

your company. That’s why an automated inventory management system is so

important. Scanning product barcodes and setting up automatic reorder points

can save valuable time by streamlining complex processes. Fifth the Start

planning ahead, you can’t afford to be purely reactionary in your inventory

management. You need to start planning ahead and being proactive. Instead of

being unprepared for sudden spikes in sales, try to notice these trends ahead of

time by monitoring social media channels for mentions of certain products and

looking at historical records to spot seasonal upticks in sales. All of this is easier

said than done. It goes back to having a powerful inventory management

system to free up your time and do most of the data analysis for you.

Source: Online Article (http://www.shmula.com/why-use-an-inventory-

management-system/9501/)
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Perpetual Inventory System

According to article of Rosemary Peavler, a perpetual inventory

tracking system is a method of immediately accounting for inventory

sales in the inventory account, if there is no theft or spoilage. It is an

inventory management system where store balances of inventory are

recorded after every transaction. It eliminates the need for the store to

close down constantly for inventory stock-taking as perpetual inventory

systems allow for continuous stock-taking. Perpetual inventory systems

keep a running account of the company's inventory.

Perpetual inventory systems involve more record-keeping than periodic

inventory systems. Every inventory item is kept on a separate ledger. These

inventory ledgers contain information on cost of goods sold, purchases, and

inventory on hand. Perpetual inventory management systems allow for a high

degree of control of the company's inventory by management. Perpetual

inventory management is generally used by companies who have the ability to

scan the inventory items sold and who use point-of-sale inventory systems.

Source: Online Article (http://bizfinance.about.com/od/Inventory-

Management/a/perpetual-or-periodic-inventory-which-should-your-company-

use.html)
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Periodic Inventory System

According to the article of Michelle Mckinley, a periodic inventory system

does not require day-to-day tracking of physical inventory. Purchases, cost of

goods sold, and inventory on hand cannot be tracked until the end of the

accounting time period when a physical inventory is performed and ending

inventory is compared against the sum of beginning inventory and purchases.

Cost of ending inventory can be calculated by using the LIFO or FIFO inventory

accounting methods, or other less common methods. Periodic inventory

management allows a company to know beginning inventory and ending

inventory but it does not track inventory on a daily basis. This means there is

lost information. Business owners cannot tell if inventory was sold or if it was

stolen, lost, or spoiled.

If you own a start-up business without much money, periodic inventory

management is definitely better because you can get by with just a cash

register and a simple accounting procedure. If you sell services rather than

products, you may not need an inventory management system unless you own

a restaurant or you are in the hospitality business. As your business grows, you

will probably want to switch over to a perpetual inventory management system

as it allows you to know the balance in your inventory account at any point in
 32

time. Large businesses typically have perpetual inventory systems rather than

periodic inventory systems since the rest of their financial and accounting

systems are computerized.

Source: Online Article (http://bizfinance.about.com/od/Inventory-

Management/a/perpetual-or-periodic-inventory-which-should-your-company-

use.html)

Local Literature

Computer-based system is a complex system wherein information

technology plays a major role. It makes the work easier, faster and more

accurate. Due to that fact, the automated scheme has become essential to

small and big companies for they are expected to give the best services

possible. Nevertheless, some businesses still prefer sticking with the system

that is not integrated with technology. Probable causes are computer illiterate

staff and lack of funds. Companies, especially the big ones are recommended

to switch from manual to automated systems because this will improve the

efficiency and productivity of the business which will uplift the industry’s

reputation.

One of the most sought after automated systems of different companies

is a purchasing and inventory system which comes hand in hand. A purchasing

and inventory system is very important in every organization because a good

 33

purchase and inventory management can create excellent productivity.

Primarily, i6nventory work consists of input, output and restock. Input is a

process of buying new products into the inventory and replacing the old

products with the new ones. Meanwhile, output is a procedure of taking out the

products from the inventory for sales or usage and refill is a process of

increasing the number of existing products in the inventory in order to fulfill the

insufficient products or escalating demands. Most of the retailing market is

using traditional way in the inventory management system where a person is

assigned to check and record the stock by hand using pen and paper. It is

where operations with regards to all the stock will be archived.

(2010, 09). Computer-Based Inventory System. StudyMode.com. Retrieved 09,

2010, from http://www.studymode.com/essays/Computer-Based-Inventory-

System-401903.html

Lopez (1978) conducted a study on a restaurants in baguio city and

found out that: 1. Restaurants are largely sole proprietorships in organization,

they are mostly owned by Filipinos, although many others are owned by

Chinese and Americans; 2. Most restaurant personnel are male, single and

predominantly high school graduates; 3. In terms of available facil;ities and

practices, the following are found: a) on service facilities, entrance and exits are
 34

properly situated, good furniture and fixtures, parking space available, good

lighting and ventilation; b0 on control of operations, promotion of the

Lewis (2002) stated that the reason for using computers vary from

person to person. Some of the computers in business are to perform accuracy,

to be as productivity, to decrease bottle necks or hassles to alter cash flows or

to simples elevate your status.

Sybex Inc (1999) stated that visual basic provide a graphical

environment in which the users usually designed the forms and control that

become the building block of tour application . Visual Basic support many useful

tools that will help the user more productivity.

The hardware of a POS system is also distinctive and important. A

typical system includes a display screen for the clerk, a customer display, a

cash drawer, a credit card swiping system, a printer, and a bar code scanner,

along with the computer loaded with the POS software. Custom features may

be added or removed, depending on the industry. A restaurant POS system, for

example, may have a feature which prints order tickets directly in the kitchen, or

a grocery store may have an integrated scale for weighing goods.

Most small businesses underestimate the importance of managing their

inventory. They do not realize that many headaches and fire drills are caused

by the lack of control and knowledge of their inventory. Whether it is a lack of

knowledge of the quantity or specs of a certain product, businesses too

 35

frequently use outdated inventory systems. Insufficient systems do not allow

them to get the most out of their inventory, because when used properly,

inventory management systems allow businesses to make a concise, real

time analysis of products and markets that help them make better business

decisions. Inventory management systems also allow businesses to better

serve their customers since they keep a detailed and accurate record of

purchase histories and trends so they can reorder products more efficiently

restaurant business was primarily through tie-ups with travel agencies, while

advertising through radio was utilized only by some establishments.

The mission of hotel and restaurant education school is to educate future

workers and leaders of the industry; however, there is a prevailing

apptrehension that teachers will become too academic in their approach and

lose contact with reality. Thus, there is a need for schools to select faculty,

students and curricula that produce “reflective practitioners” and not scholars

clark 1989.

Some define fast food restaurants as limited mean restaurants that do

not have table service(eherts and gisler, 1989). Most fast food restaurants are

parts of large well known chains. There are also small chains of just a few

restaurants as well as single unit operation. Naturally, fast food restaurant, as

their name implies, serve food much faster. These restaurants often boast of

getting food to their customers in less than a minute after an order is taken.
 36

They also have fewer choices of mean items, furthermore, fast food restaurants,

the hamburger has has remained king. There are more hamburger chains

compared to any other category of fast food chains such as those that

specialize in chicken, seafood, roast beef sandwiches, Mexican food, Chinese

food, pizza, spaghetti and dozens more.

Janes (2001) stated that computers are extremely reliable device and

very powerful calculators with some great accessories applications like word

processing problem for all of business activities, regardless of size, computers

have three advantages over other type of office equipment that process

information because computer are faster, more accurate more economical.

Reyes (2005) task would be time consuming to accomplish manually and

more practical with the aid of computers field in cabinet.

Dioso (2001) stated that computer assist careful intelligent planning,

organizing, actuating and controlling .This maybe observed from the past that

they monitor production activities, solve scientific problem and help arrive in

tentative answer to a multitude of involve conditions.

Ralph M. Stair (1999) emphasized that the development of technology

through the years have enabled us to do more with less effort. From the

orientation of the light bulb to the industrial revolution and beyond, we have

continuously tried to in a more efficient means of doing tasks.

 37

(2011, 11). Review of Related Foreign Literature. StudyMode.com. Retrieved

11, 2011, from http://www.studymode.com/essays/Review-Of-Related-Foreign-

Literature-823615.html

It is without a doubt that one of the major roles played by today in almost

every area in the society particularly in business and marketing is the

computerized system. This system enables us to make very detailed work and

follows accurate directives without error. This study is prepared for the

implementation of the Sales Inventory System in Borderless Hub Philippines,

Inc. located in Rm. 306-307 Pink Walters Building Quimpo Boulevard, Davao

City. In order to know the problem, we conducted an interview with the

managing team for sales, billing, and inventory. This led us to problems like the

manual time-consuming record of documents, billing errors and difficulty in data

retrieval.

The basic advantages of the proposed system are to make the process

fast and well-organized which means that they can process much more quickly

than humans. Data retrieval has to be searched in lots of registers slowly and it

wastes a lot of time. The current system that the company uses is manual

receipt recording. It makes the data not reliable enough as it is hand written and

there is a high probability of errors to occur. Data recording consumes a lot of

space since it is stored in cabinets and folders. It is also prone to data loss

where it could be missing because of improper file management.

 38

Inventory is a company’s merchandise, goods and materials that are

contained in the store factory at any given time. The employees need to know

how many units of their products are available for reservation and sales and the

items that are sold. All of these rely on the inventory system to present

solutions. The sales inventory system would provide service to the user, input

information to the database, summarize the inquiry of bills, and manage the

product releases and storage. This would generate a faster improvisation of

work given less time and effort.

(2012, 10). Sale Inventory System. StudyMode.com. Retrieved 10, 2012, from

http://www.studymode.com/essays/Sale-Inventory-System-1117762.html

Inventory control systems maintain information about activities within

firms that ensure the delivery of products to customers. The subsystems that

perform these functions include sales, manufacturing, warehousing, ordering,

and receiving. In different firms the activities associated with each of these

areas may not be strictly contained within separate subsystems, but these

functions must be performed in sequence in order to have a well-run inventory

control system.

In today's business environment, even small and mid-sized businesses

have come to rely on computerized inventory management systems. Certainly,

there are plenty of small retail outlets, manufacturers, and other businesses that

continue to rely on manual means of inventory tracking. Indeed, for some small
 39

businesses, like convenience stores, shoe stores, or nurseries, purchase of an

electronic inventory tracking system might constitute a wasteful use of financial

resources. But for other firms operating in industries that feature high volume

turnover of raw materials and/or finished products, computerized tracking

systems have emerged as a key component of business strategies aimed at

increasing productivity and maintaining competitiveness. Moreover, the recent

development of powerful computer programs capable of addressing a wide

variety of record keeping needs—including inventory management—in one

integrated system have also contributed to the growing popularity of electronic

inventory control options

Given such developments, it is little wonder that business experts

commonly cite inventory management as a vital element that can spell the

difference between success and failure in today's keenly competitive business

world.

http://www.studymode.com/essays/Sales-And-Inventory-System-784556.html

Studies rely on information researched by the proponents. Related

literature and studies help the researcher understand the topic better because

this may clarify vague points about the problem. It also guides the proponents in

making comparisons between his findings with the findings of other similar
 40

studies. We research and gather this all information by internet, magazines

and books.

According to the article in Cleantouch Class Management System it

stated that, to provide complete computerized operations in any school.

Students can be managed through Bio-Data (GR No. Allotment), Attendance,

Fees, Examination, Leaving modules. Staff records can be computerized by

Bio-Data > Staff Salary > Leaving modules. Accounting module is integrated

with all other modules to getting rid of transaction duplication.

Asen, Judith. 2008. Differential Object Marking: Iconicity 17:673-711.

According to the articles in SKG Computer Solutions it stated that,

Handling this study center/school/college very well, is very tedious task to

manage. The data on registers or maintain the database manually. Therefore,

the School Management System software is provided for you. It is errorless and

appropriate version. It is the computerized system to manage the data of

studycenter/school/college.

[software.techrepublic.com.com/abstract.aspx?d,2008]

According to Eleonora Alekseykina , she stated that Reliable and fast

school management software with the great customers support. It'll help you
 41

with your daily school management routines and deliver you from your

paperwork.

[http://download.cnet.com/School-Management-System/3000-2065_4-

10538769.html,2009]

Inventory is one of the most important in monitoring a stock that take

place in business activity. The inventory system does the entire task in

computing the value with inventory (cost and quality) and handling data or

information. Inventory System maintains an orderly flow of supplies, raw

materials, or finished goods through an office shop/factory because of items in

any inventory. Represents cost, they need to be controlled. The purpose of

inventory system for management are to keep inventory levels and cost at

desire minimums while maintaining to proper safeguards over materials to

places and people who need them.

Inventory review refers to the time interval between counting inventories.

Periodic review systems have a set schedule for conducting an inventory count.

Transactional review systems update the inventory count after each transaction.

Periodic review is less resource intensive but more prone to creating shortages

and inventory discrepancies while transactional review is more accurate but

requires more resources.

Inventory costs can be broken into several categories: the actual cost of

the inventoried product, the cost of storage and the cost of unmet demand if
 42

inventory is not available to fill orders. Additional costs include transportation

and ordering costs incurred when replenishing inventory. Each of these costs is

unique to individual businesses and can vary widely.

(Warren R. Planret, 2002)

Inventory means goods and materials, or those goods and materials

themselves, held available in stock by a business. This word is also used for a

list of the contents of a household and for a list for testamentary purposes of the

possessions of someone who has died. In accounting, inventory is considered

an asset.

http://www.studymode.com/course-notes/Inventory-System-1128684.html

It is little wonder that business experts commonly cite inventory

management as a vital element that can spell the difference between success

and failure in today's keenly competitive business world. Writing in Production

and Inventory Management Journal, Godwin Udo described

telecommunications technology as a critical organizational asset that can help a

company realize important competitive gains in the area of inventory

management. According to Udo, companies that make good use of this

technology are far better equipped to succeed than those who rely on outdated

or unwieldy methods of inventory control.

 43

Automation can draidatically affect all phases of inventory management,

including counting and monitoring of inventory items; recording and retrieval of

item storage locations; recording changes to inventory; and anticipating

inventory needs, including inventory handling requirements.

http://www.studymode.com/essays/Review-Of-Related-Studies-Inventory-

732920.html

Foreign Studies

Automation can draidatically affect all phases of inventory management,

including counting and monitoring of inventory items; recording and retrieval of

item storage locations; recording changes to inventory; and anticipating

inventory needs, including inventory handling requirements. Effective Inventory

Analysis. Get Data Related to Effective Inventory Analysis. For many

distributors, inventory is the largest and perhaps the most important asset.

Inventory ties up more money than buildings or equipment, and is often less

“liquid.” It is crucial, then, that distributors develop and use a comprehensive set

of tools that allows close monitoring of the performance of inventory

investments. Read more about simple measurements that can help you

maximize your investment in inventory.

 44

According to the study of Edwin Bello and his fellow researchers of

Computerized Monitoring and Inventory of Stock with Warning Level dated

March 2005, many firms have thousands of items of inventory which require

some form of control. The usage calculations and record keeping chores would

soon become overwhelming were it not for the computer and its unique

information storage and retrieval capabilities.

http://www.studymode.com/subjects/related-studies-in-pos-page2.html (2011,

09). Chapter Ii: Related Literature and Studies of Inventory

System.StudyMode.com. Retrieved 09, 2011, from

http://www.studymode.com/essays/Chapter-Ii-Related-Literature-And-Studies-

767850.html

Local Studies

According to the study of Anna Marie Beltran Distor of Proposed Sales

Monitoring System issued 1995, the accelerated work structure of the company

proper monitoring is essential in order to keep track of the company’s sales

activities. Her system aims to come up with an efficient, and accurate

mechanized system of preparing invoices that will keep trSack of the daily

transaction and generate reports. Important information will be provided by this

study in order to prove that the computerization of the company’s operation and

achieve a more reliable and efficient means of monitoring day to day activities.

Her system focuses on the analysis and design of the sales monitoring system
 45

which will monitor the stacks inventory of the sales departments. This system of

hers is somewhat related to our study but our system focuses more on the

inventory monitoring system of a trading company.

Popular author of Accounting, Waldo T. Passion (1990) in his book

stated that, to improve their efficiency and reduce their cost of operation.

Reports are more timely and accurate. Computers have large capacity to store

data and tremendous speed to manipulate and recall data to the format a user

wishes to use which the introduction of microcomputer computation of

business is more affordable.

Chapter 3

METHODOLOGY AND SOURCES OF DATA

This chapter deals with research design, respondents of the study,

instrumentation, validation, procedure of the study and the statistical treatment.

Research Design

The descriptive survey method was used in this study. Descriptive

research according to Calmorin (2016) is designed to gather information about

the present existing conditions. The objective or purpose in using this method

is to describe the nature of the situation as it exists and to explore the causes of
 46

prevailing conditions with practices and descriptions of the activities. It involved

collection of data in order to test hypothesis and to answer the questions

concerning the subjects of the study.

Moreover, descriptive survey method describes and interprets what is. It

is concerned with conditions or relationships that exists, opinions that are held,

processes that are developing. The process goes beyond gathering and

tabulation of data. It involves an element of interpretation of the meaning or

significance of what is being described

Validation of Instrument

In testing the validity and reliability of the instrument on the effectiveness

of the tutorial reading program, some steps were undertaken. After writing the

specific items on the different aspects, content validity of the questionnaire-

checklist was determined. The questionnaire checklist was shown to the

researcher’s adviser and professorial lecturers of the college. The instrument

was improved by incorporating their comments and recommendations. A final

review of the questionnaire checklist was done by the adviser to assure that

changes were made.

Subject of the Study

The respondents of this study will be the school since the very purpose of

this study is to know the Sufficiency of available cookery tools and ingredients
 47

of Renaissance School of Science and Technology and its implication to come

up with an Inventory Analysis.

Source of Data

For any research in order to reach its objective, the identification of an

appropriate means of data collection is obligatory (Sarantakos, 1994). Generally

a variety of methods is considered in order to form the basis to the research. A

researcher-made questionnaire-checklist was used as the main instrument in

gathering the needed data. The researcher will conduct a document analysis on

the Sufficiency of available cookery tools and ingredients of Renaissance

School of Science and Technology and its implication to come up with an

Inventory Analysis.

Procedure of the Study

In the conduct of the study, standard operating procedure was applied as

shown in the Gantt Chart of Activities.

After the conceptualization of the research problem, it was followed by

reading several related literature and studies in order to come up with the

development of Chapters 1, 2, and 3 of the study.

Colloquium followed after the submission and approval of the said

chapters, then the revision of work. The questionnaire checklist was constructed

and validated to obtain the needed data. Permission from concerned authorities

was secured by the researcher in coming up to the last chapters of this study.

After seeking the permission to conduct the study, the questionnaire-

 48

checklist was administered to the respondents. Upon the retrieval of the

questionnaire, tallying, tabulation, analysis and interpretation followed.

Summary of findings, conclusions and recommendations were made.

This led to the finalization of the remaining chapters of the study needed to be

presented in the researcher’s final oral defense.

Statistical Treatment of Data

The following statistical tools were used to gather the needed data.

To determine the profile of the respondents, frequency, percentage and

rank distribution were applied.

To determine the level of availability of, weighted mean was used.

To determine the problems encountered weighted mean was utilized.

 49

Chapter 4

RESULTS ANALYSIS

1. Are the equipment and the facilities available in laboratory properly

arranged and installed appropriately?

10 out of 10 students we interviewed said yes. As they observed

during their laboratory the equipment and materials found there is well

arrange & placed in their proper location and the area is protected from the

pest infestation regularly fumigated to eliminate pests.

2. Inquiries and borrowing process of equipment in the laboratory given

accurately and appropriately to the Culinary students?

10 out of 10 culinary students said yes. As long as the students

have the borrowers form signed by the professors, students can borrow

equipment from the laboratory and the personnel assigned their will give

it.

3. Are Culinary students of RSST feel contented to the school services

they receive?
 50

4 out of 10 Culinary students we interviewed said yes. They are

satisfied to the services they receive from the school they don’t have

problem about it and 4 students said not so because they are not really

contented of the services they receive. For them there are some services

that cannot satisfied them specially from the clinic services .They give a

little of medicine and some of the staff there will not believe them to their

reasons why they asked for medicine. Two students said NO they are not

contented.
 51

Chapter 5

Summary

The summary of our study is all about the availability of the

equipment and facilities of the RSST laboratory to the students taking the

subject cookery strand .Many students using the laboratory for own

personal use there are the high school and the other HRM students and

of courses and the other courses that needs the laboratory for some

personal events that needs to cook and the lab although there are are

not much so called events of the other courses but still it adds up in the

limited spaces in the lab.

The availability of the equipment in Cookery lab are the items that

need for cooking and it is complete and durable to use for the student but

the other students said that there are some updated items does not yet

available in RSST Lab for some example are the kitchen grinder, kitchen

torch, different kind of knives and many more and yet there is still for the

RSST Lab the stoves ovens and refrigerators are old and already worn

out and not yet properly maintained.