Working capital and inventory management practices of hardware stores in selected cities of Cavite / by Angelica S. Adoptante, Alfa Mae A. Austria and Sienna Joy M. Paiton

Thesis (Bachelor of Science in Business Management Major in Financial Management) Cavite State University.

Includes bibliographical references.

College of Economics, Management and Development Studies (CEMDS), Department of Management

ADOPTANTE, ANGELICA S., AUSTRIA, ALFA MAE A., and PAITON, SIENNA JOY M. Working capital and inventory management practices of hardware stores in selected cities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial. Management. Cavite State University, Indang, Cavite. June 2018. Adviser: Mrs. Cecilia T. Cayao.
A study was conducted in selected cities of Cavite to determine the working capital and inventory management practices of hardware stores. Specifically the study aimed to: determine the socio-economic characteristics of the managers of hardware stores in selected cities of Cavite; identify the business profile; identify the working capital of hardware stores; determine the relationship of socio-economic characteristics and business profile to the inventory management practices of hardware stores; determine the relationship of working capital to the inventory management practices of hardware stores; and identify the problems encountered by the hardware businesses regarding working capital and inventory management practices. One hundred twenty respondents were selected by means of stratified proportional random sampling with the use of Slovin's formula. Data were collected with the use of interview-schedule. The data were analyzed using Pearson correlation test and descriptive statistics such as frequency count, percentage, mean, range and rank: --** Majority of the managers operating hardware stores under sole proprietorship form of business organization in selected cities of Cavite were at the age bracket of 21 to 50 years old, married and graduated with bachelor's degree. Most managers of hardware stores in selected cities of Cavite follow a buying pattern. Majority of the business uses just-in-time as the type of their re-ordering system. In determining the quantity they purchase, they consider demand of materials the most. On the other hand, they usually order inventories every week and aside from this, the normal requisition lead time of orders from suppliers ranged only from three to four days. Moreover, majority of the business does free delivery to their customers. This means that some of the participants had easy access to their suppliers and had a good relationship to their customers. Most of the business use both cash and credit basis as their term of purchase. Also, once the damaged stocks were discovered during the delivery, the business sends it back to the supplier. Results of the Chi-square test revealed that all of the three selected socio-economic characteristics of managers, the three selected business profile and working capital of hardware stores were significantly related to the inventory management practices of hardware stores in selected cities of Cavite. Results revealed that few managers of hardware stores in selected cities of Cavite were facing challenges or problem in handling the working capital and inventory of the business. These include delay of delivery of orders from suppliers, late payment of customer credits and increase accounts receivable. The result concludes that the variables of the study were significantly related to each other. The socio-economic characteristics of managers such as Age, 61,41 status and educational attainment the business- profiles of hardware -'stores such 4;as form of ownership, years of operation and location; and the working capital significantly influenced inventory management practices of hardware stores, in' selected cities of Cavite. To maintain an efficient and effective inventory management practices, it is recommended to the store managers to have strategies on handling their inventory which include push inventory model, pull inventory model and hybrid inventory model. Also managers must assign a credit collector to avoid late payments of the customers and to prevent the increase of account receivables.

Submitted to the University Library March 13, 2019 T-7819