Master Thesis

A good Inventory Control System takes a holistic approach to inventory and empowering trading industries to optimize productivity and efficiency along the supply chain while having the right inventory at the right locations to meet customer expectations. This study aimed to outline some of the main issues associated with the use of Inventory Control System on how it influences on the business performance level of the SMEs which are engaged in trading industries at Parañaque City. The data were gathered from the trading employees under SMEs business firms in the said City who are utilizing Inventory Control ystem in monitoring and managing their inventories and have been in the operation as trading company for at least five (5) years. The list of SMEs was only limited on the updated data from BPLO 2019 report. It explored on Quantitative Correlational Method using self-constructed survey questionnaire, interview and observations as the principal means of collating data. Hence, the study focused on the four types of Inventory Control Systems, namely: (1) Perpetual; (2) Periodic; (3) Barcode; and (4) Radio Frequency Identification. These measured on the business enterprises' performance along increased sales revenue, costs of goods sold, and profit margins. More so, it identified the underlying challenges in the implementation of inventory system in the trading industries. Results showed that the use of inventory control system played an important role to the business performance of the SMEs either in its profitability and sales revenue levels. Therefore, in this business climate of increasing competition, government and the private business enterprises need to focus on industry upgrading by adopting effective inventory management with the right strategies to maximize profit, keeping costs down and reduce potential loss.