City College of Tagaytay

Alke.St, Tagaytay City

Effective Inventory Management in Hospitality Industry

A Case Study

Presented to

The faculty of

School of Tourism and Hospitality Management

 1. Introduction

Every business that's currently running or existing, one of the factors that it stayed afloat is

because of proper handling in inventory management. It is the key to any business that everyone

should notice. Eliminating the risk of losing many assets from the inventory, and also the supply

chain management will go smoothly without any disturbances from unforeseen forces created by

market segmentation.

This inventory is to both assets and items needed to be sold and use to produce.

In some perspective towards Effective inventory management in the Hospitality Industry, it

can be difficult because of the intangible nature of their goods and difficulties tracking it and

storing it. But look on the bright side, dealing with this kind of problem makes you prepared to

handle this kind of situation and giving you more edge to be effective in inventory management.

2. Summary

Effective inventory management needs an efficient system so it may flow according to the

demand or the production. These guides may help you in inventory, considering that these steps

may take some time and money because you are putting a lot of work in your business, according

to Olowolaju (2013) based on her perspective towards inventory management, a critical point or

aspect for successfully handling your business and lowering the cost of every inventory, avoiding

many risks, being effective stock management and last knows the demand of consumer that

might affect the flow of the supply chain management. To Kuczwara(2018), he implies that

having too little amount of inventory may result in frustration of the customer, in the same

process losing your potential customer, losing in the competition, and having a bad reputation.
The steps that will make an effective inventory management

Getting started

 Appoint a person to secure the stock, can easily report back and always attentive in

his/her jobs, because assigning a people to this jobs needs practice and experience to

avoid risks.

 Make a system that everyone can follow, first in/ first out method, spread sheet method

 Install software that can easily track all records, sales and volume of stocks.

Ordering Goods

After you assemble your team, you need to focus on how you will order your goods; especially

this type of goods can be perishable and cost too much.

 Starts procuring to suppliers, some suppliers are willing to negotiate and bargain for the

prices. You need to have an agreement to understand each other.

 Considered the performance of your supplier, how they deliver, quality of their raw

materials and reviews about them.

 Implement FIFO method

Tracking Inventory

It varies from the size of your inventory and the speed of your delivery. Installing device like

barcode scanner, electronic data interchange that can eliminate risks and easy to check regularly.

Stock Optimization

This is the last step and also important part of being an effective inventory management.
  Forecast the amount of product needed to be produce, always prioritize the important

product.

 Avoid storing to much that can cause spoilage; especially perishable goods

 Always check items that are about to be sold or taken to be used but still recorded in your

inventory.

 Try something new in your routine of ordering products or raw materials because this

kind of idea will elevate your perspective towards your business. A change is for the

better, unless if it is needed, some changes can cause risks.

 In your Research and Development, search about different types of good in different

market that can boost your production and coping up to your competitors.

Practice these habits of managing your inventory will be fulfilling because it paved the way for

good decisions, always prioritize what is important and having a good communication is a must.

3. Conclusion

We the researchers, therefore conclude that being an effective inventory management in

Hospitality Industry takes a lot of process and decision to make. Every part should be well-

planned and agreement to avoid risks and loss of profits.

4. Recommendation

The researchers recommend following steps on being an effective inventory management,

those steps will guide any entrepreneur or business manager in Hospitality Industry. Do it

properly and keep in my mind that Hospitality Industry has many problems that needed pay
attention. The researchers only studied on how to be an effective inventory management in

Hospitality Industry.

5. References

Retrieve from https://erply.com/effective-inventory-management/

Retrieve from https://www.grossarchive.com/project/788/STOCK-MANAGEMENT-IN-

THE-HOTEL-INDUSTRY.html

Retrieve from https://projectregards.com/hospitality-and-catering-management/the-impact-

of-strategies-of-production-planning-on-inventory-control-in-hospitality-industry-a-case-

study-of-jubilee-hotel-kaduna/undergraduate-research-project-topics-and-materials-students-

in-nigeria