Correlation between the efficiency of retail inventory management and the profitability of registered grocery stores in Tondo, Manila / Crizalyn A. Balitaan, Jessica Stephanie G. Domingo, Shekinah Dane G. Magadan, Anne Kyla Mae Saizon, Allyssa Kyle T. Sala, Jinky Ann L. Villena. 6

Undergraduate Thesis: (BSBA major in Financial Management) - Pamantasan ng Lungsod ng Maynila, 2023. 56

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Abstract A business' inventory is one of the essential aspects that a business owners should manage. Inventories are typically associated with inventory costs which are purchasing, ordering, carrying, and stockout costs. High inventory costs can be detrimental to a business' success, and this can be attributed to poor retail inventory management. Efficient inventory management is important as it reflects a business' ability to control its inventories and reduce the costs which have a significant impact on a business profitability. However, there is limited information regarding inventory management practices in a small business setting specifically grocery store. The objective of the study is to test the relationship between the efficiency of retail inventory management and the profitability of registered grocery stores in Tondo, Manila. This study was anchored on Dr. Eliyahu Goldratt's Theory of Constraints. The study employed inventory analysis techniques and inventory ordering techniques for retailers as the independent variables, while considering inventory costs such as purchasing, ordering, carrying, and stockout cost as the intervening variables, and the gross margin return on investment as the dependent variable. The population consisting of 14 registered grocery stores was obtained from the Manila Bureau of Permits. The data was gathered using a self-prepared survey questionnaire distributed to the grocery stores' managers or owners, and the researchers used descriptive statistics, likert scale, Spearman's Rank-Order Correlation Coefficient, and the statistical program called SPSS Statistics for statistical data analysis. Findings of the study showed that the efficiency of retail inventory management has no relationship with profitability in terms of gross margin return on investment of registered grocery stores. Future research on inventory management of different groceries and other profitability measurements recommended to assess its relationship to a business's profitability. was.

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