An Assessment on the Effectiveness of the Inventory Management System of Red Camia Supermarket in Apalit Pampanga: Implication for Profitability

Vol.4, No.1

Abstract

Red Camia is a supermarket in Apalit Pampanga owned by Ms. Camia Ginto. They carry out
their inventory tasks using traditional inventory procedures, and as of 2022, They have
integrated an inventory management system into their business operations and offer delivery
for customers. The Supermarket's operating hours are from 9 am to 7 pm every day. The
purpose of this study is to determine whether an inventory management system should be
implemented by newly functioning businesses and to observe the outcome of the Red Camia
supermarket`s use of the system within a year. This study focused on determining the
effectiveness of the supermarket system that would serve as the basis for implementing an
inventory system for a new operating business.

This study revealed that there is no significant difference between the evaluation of the two
groups of respondents in terms of purchasing inventory, storing inventory, and profiting from
inventory. This was confirmed by the t-computed value of 1.494, which is greater than the t-
tabular value of 3.055 at a .01 level of significance and 12 degrees of freedom. With these
compared values, the null hypothesis is accepted. The results of the study found that the
system is not effective in checking defects and damages, identifying stocks and shipping
products, and providing accurate data. Solutions were undertaken by the Inventory Controller
and Store Manager: Set the time of inventory to check the items; separate and replace them at
once; Update all stocks and shipping products; Inventory controller updates his purchasing
order for every product sold; and accurate and sufficient products displayed for each item.

The Proposed Development Plan includes the Key Result Areas of Purchasing Inventory,
Storing Inventory, and Profiting from Inventory. Other areas included were as follows:
Objective, Program of Activities, Persons Involved, Time Frame, Budget, Monitoring, and
Evaluation. This study recommends conducting parallel studies in other companies to
determine the effectiveness of the management inventory system and that the Red Camia
Supermarket implement the researchers’ proposed development plan.