Production and Inventory Management Practices of Selected Small Scale Businesses in Taytay, Rizal: Basis For Business Strategic Plan

SUMULONG COLLEGE OF ARTS AND SCIENCES
SCAS Building, M.L Quezon Ext. Brgy. Dalig, Antipolo City
PRODUCTION AND INVENTORY MANAGEMENT PRACTICES OF
SELECTED SMALL SCALE BUSINESSES IN TAYTAY, RIZAL: BASIS
FOR BUSINESS STRATEGIC PLAN
Presented to:
Prof. Eleonor Aguilando
Presented by:
Amparado, Marriane
Inabayan, Rixie Kate
Sanchez, Erick James
Sean, Mateo
February, 2020
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Filipinos are known for being gumptious, if there is a possible work and there are
ways to get a money they grab without any hesitation. Filipinos are also known as
hardworking person, some of the Filipino have multiple jobs just to provide basic needs
of their family. While in the other hand, most of our countryman decided to put up there
own businesses to get a large amount of money. There are a lot of businesses like
selling clothes, foods, medicine, etc. In the whole country there are a lot of flea markets
or bazaars where Filipinos have a unique way in using the term ‘tiangge.”
Bazaar is a market (as in the Middle East) consisting of rows of shops or selling
miscellaneous goods. It is a place for the sale of goods. The question is how did the
bazaars starts and how did it became popular until to this day? “The bazaar of the
ancient Islamic world was vividly described in the folktales of The Thousand and One
Nights. It is located in a district quarter of the town, it was bustling and noisy by day in
contrast to the quiet residential quarters.” - (Britannica, Bazaar,.2020)
Bazaar is the method of selling goods in one place is widely use even before for
trading purposes and this is how our economy is driven. Bazaar became popular and
evolve in different ways, most common today is night market. Since a lot of filipinos
work at day, their free time is at night that’s why they’re patronizing night markets.
Tiangge are most common in the Philippines at large places like in Greenhills, Divisoria,
Baclaran and at Taytay, Rizal. One of the well known tiangge is at Taytay, Rizal.
Taytay is one of the municipalities in Rizal. It is known as the “Woodworks and
Garments Capital of the Philippines.” ‘’Taytay’s pride and glory are their people’s skills
and talent. The municipality of Taytay offers affordable apparels that catches the
attention of the people in the country. From the quality yet affordable dresses and
clothes to the eminent manufacturers or fabricators of wooden architectural products.’’ –
(Taytay Rizal Government, 2020)
The Taytay Tiangge is considered as an economic central located at the uptown
municipality of Taytay, Rizal Philippines. It became a phenomenon as the place was
being visited by a large number of different buyers, traders, suppliers, sellers and
businessmen all over the Philippines.
Taytay Tiangge offers Ready-To-Wear (RTW) products of low price. Aside from
RTW, it also has curtains, bed sheets, shoes and bags. According to Petrescu and
Bhatli (2013), Flea Market or ‘tiangge’ compared to the mall are more likely preferred by
the customers due to price, possibility to negotiate, and finding used merchandise. They
also stated that flea markets offer a lot of cheaper merchandisesthat in stores and
malls. The products offered in Taytay Tiangge are more varied and give customers
more satisfaction.
Taytay Tiangge owners has there different ways of producing their products.
Since Philippines has several holiday seasons every, their management practices in
terms of production always differ each season. This study will focus on their production
and inventory management practices. Production management is the one that controls
the flow of assembly line. They supervised the production to meet the deadline and
quota. Inventory management is a systematic approach to sourcing, storing and selling
inventory of both raw material and finished goods. (Tradegecko, 2020)
Background of the Study
Taytay, Rizal is known as the Garments Capital of the Philippines. It is one of the
14 towns in the province of Rizal. Its local garments are the bread and butter of the
town’s people. The history of tiangge is very rich in culture. As time passes by, affluent
families from Taytay, Rizal decided to capitalize in this trade. They took advantage and
lent the town’s women sewing machines and fabrics that they can use for their
businesses. The capitalist would then sell their ready-made dresses in Baclaran,
Divisoria and Pasig, enduring the heavy traffic jam, the intermittent weather and the
busy roads of the city. This served as a routine for the local garment vendors for the
past years, in 2008. (Taytay Rizal Government Philippines, 2020)
Mayor Joric Gacula, the Municipality of Taytay, Rizal saw the need and the
potential of having local garment sellers to have their own tiangge marketplace in town.
The Municipal Council signed the Resolution No. 178 authorizing the Municipal Mayor
Hon. George Ricardo R. Gacula II, to negotiate and enter a Memoramdum of
Agreement (MOA) with “Mga Manininda ng Taytay” (wholesalers and retailers of RTW
dresses) represented by its President Evelyn Domingo, to have a fleamarket (tiangge)
in the vicinity of Taytay at a specified day and time. This established the tiangge in
Kalayaan Park that is located in Taytay in order to encourage small retailers to register
and sell their local goods in their town, not having to bear anyone the heat and
exhaustion of travel to the city. The Kalayaan Park Tiangge was a blast and garnered
an initial of 400 registered retailers. (Best Taytay, 2020)
As of 2015, the population of Taytay, Rizal is about 319,104 people. ( PhilAtlas,
2020) The researchers want to study the production and inventory management
practices of scale businesses in Taytay, Rizal to provide a business strategic plan that
will be helpful to those people who have a stall in Taytay Tiangge. The researchers also
want to know how businesses manage their profit and do their inventory. The
researchers wants to know what are the peak season and least season of the products
they’re selling.
This study will benefit the people who have stalls at Taytay Tiangge by providing
them a strategic plan on how they are going to manage their production and inventory.
The researchers will also benefit from this study by using the data gathered for future
purposes and learn how to manage a business to have a better profit. This study will
also benefit future researchers as their reference guide.
Statement of the Problem
The primary objective of the study is to determine the production and inventory
management practices of selected small Taytay Tiangge Stall owners. Specifically, it
will seek answers to the following questions:
1. What are the inventory management practices of the Taytay Tiangge stall
owners?
2. What are the production management practices of the Taytay Tiangge stall
owners?
3. What month is the peak season of Taytay Tiangge stall owners?
4. What month is the least season of Taytay Tiangge stall owners?
5. What kind of apparel has the most sales?
Scope and Delimitation
The study focuses on the production and inventory management practices of
selected small scale businesses in Taytay Tiangge. The respondents are composed of
15 selected tiangge stalls in Taytay, Rizal. The questionnaire will serve as the main
instrument in gathering the data for this research. This research is conducted for the
fiscal year 2020.
This study will only focus on garments. The data that will be gathered by the
researchers can only be use for small scale businesses like tiangge in Taytay, Rizal.
Significance of the Study
This study can help business owners in terms of easily knowing the product that
is needed by the market. It can help business owners to improve them balancing
between the amount of inventory of coming in and going out. In terms of inventory , it
controls the timing and costs of non-capitalized assets and stock items. While in
production, it helps business owners to how to control the income to meet obligations to
their customers and suppliers. It helps them to control on how many to produce each
season.
Taytay Tiangge Stall Owner. Inventory can help the owner to when to minimize
and maximize the number of production that they are going to produce in peak season
and least season.
Researchers. It can help the researchers to gain a knowledge about the
production and inventory management that can be use for building a business.
Government. It will help primarily to raise revenue for government expenditures
and to support its objectives such as building roads, schools, better government salaries
and improve government services.
Community. It will help the community by providing employment opportunities.
This will be a great help for other people to have a better livelihood.
Future Researcher. This will be their reference guide to their future study. The
future researcher can use the outcome of this study as a tool for improvement to the
future business owners.

Theoretical Framework
Fig. 1 Bottom of the Pyramid Theory
The researchers will use Bottom of the Pyramid Marketing Theory. According to
Petrescu and Bhatli (2013), tiangge sellers use Bottom of the Pyramid Marketing Theory
an they defined this as “marketing to the bottom of the pyramid to low income people is
one of the new trends in marketing literature.” This strategy highly complements the
financial capability of the majority of the customers. On the present situation, tiangges
have variety of customers. As further mentioned by Petrescu and Bhatli (2013), bazaars
does not only serve the lower class and income shoppers, but also the white collar and
professional occupations.
Fig. 2 (Inventory Control)
Small Business Chron defined Inventory Control Theory as owners using this
theory help them to optimize the production and storage of their units of products and
help them to minimize their costs. Small business owners likein Taytay Tiangge can use
ideas from several inventory control methods to manage their production and storage
based on their cost-containment and customer service needs. The researchers will use
this in terms of knowing what kind of inventory control management practices tiangge
owners in Taytay, Rizal is doing.
Fig. 3 (Theory of Production)

According to Intelligent Economist, The Theory of Production explains the
principles by which a business firm decides on how many of each commodity they will
produce. It is about how much of each kind of labor, raw material, fixed capital goods,
etc. the company will use. The researchers will use this to know what kind of production
management practices tiangge owners doing. The researcher will know if how many in
each holiday season tiangge owners’ producing.
Conceptual Framework
Figure below shows the research paradigm which utilized the Input-Process-
Output System Approach. The INPUTS are focused on the demographic profile of the
respondents of selected small scale businesses in Taytay, Rizal and other factors that
affect the production and inventory management.
The PROCESS refers to the assessment on the production and inventory
management practices of selected small scale businesses in Taytay, Rizal through the
analysis of data gathered, survey questionnaire and statistical treatment.
The OUTPUT or the outcome of this research is an improved production and
inventory management of small scale businesses.
INPUT PROCESS OUTPUT

Demographic Profile Assessment on the
of the respondents in production and
terms of: inventory
management
 Name of the practices of selected
5Definition of Terms
The following terms are defined operationally/conceptually for the better understanding
of the study.
Basis. The underlying support or foundation for an idea, agument or process.
Bazaar. A market consisting of rows of shops or stalls selling miscellaneous
goods.
Businesses. Tiangge in Taytay, Rizal; organized efforts and activities of the
individual to produce and sell goods and services for profit.
Inventory. Quantity of goods owned and stored by a business that is intended
either for resale or as raw material.

Least season. The time of year when a customers have low demands.
Management. Administration of the business, the process of delaing with or
controlling things of people.
Peak season. The time of year when a lot of customers have high demands
Practices. Tactic or activity a business conducts to reach its objectives. The
atual application of method.
Production. The action of making or manufacturing from raw materials.
RTW. ready to wear.
Scale. Measurement.
Small. Limited size or dimension, a size that is less than normal of usual.
Strategic. a firm’s high level plan for reaching specific business objectives. The
identification of long-term aims and interests and the means of achieving them.
Tiangge. unique term for bazaar.

Reference Notes
Zomerdijk, L. G., & de Vries, J. (2003). An organizational perspective on inventory control:

Theory and a case study. International Journal of Production Economics, 81(82), 173–183.
https://doi.org/10.1016/S0925-5273(02)00276-1
Jonsson, P., & Mattsson, S. A. (2008). Inventory management practices and their implications
on perceived planning performance. International Journal of Production Research, 46(7),
1787–1812. https://doi.org/10.1080/00207540600988071
Production Management Techniques | Chron.com. (n.d.). Retrieved February 8, 2020, from

https://smallbusiness.chron.com/production-management-techniques-45200.html
What is Inventory Management? 10 guides to mastering commerce. (n.d.). Retrieved February 8,

2020, from https://www.tradegecko.com/inventory-management
Singh, R. (n.d.). BOTTOM OF THE PYRAMID MARKETING.
Inventory Control Theory | Chron.com. (n.d.). Retrieved February 8, 2020, from

https://smallbusiness.chron.com/inventory-control-theory-76341.html
Theory Of Production: Short-Run | Intelligent Economist. (n.d.). Retrieved February 8, 2020,

from https://www.intelligenteconomist.com/theory-of-production-short-run-analysis/
Best Taytay. (n.d.). Retrieved February 8, 2020, from https://www.taytayrizal.gov.ph/about-best-

taytay
Serving the World’s Poor, Profitably. (n.d.). Retrieved February 8, 2020, from
https://hbr.org/2002/09/serving-the-worlds-poor-profitably
Bazaar | market | Britannica. (n.d.). Retrieved February 8, 2020, from

https://www.britannica.com/topic/bazaar
pg. 1 STRUCTURE 1.0 Objectives 1.1 Introduction 1.2 Meaning of Production 1.3 Types of
production systems 1.4 Types of manufacturing processes 1.5 Meaning of Production
Planning and Control (PPC) 1.6 Procedure of Production Planning and Control 1.7
Elements of Production Planning and Control. (n.d.).
Chapter 2
REVIEW OF RELATED LITERATURE
This chapter presents the related literature and studies after the thorough and in-
depth search done by the researchers. This will also present an analysis and synthesis
of the source materials, written in a specific style which flows from broad - narrow to
fully understand the research to be done. The main purpose of the related literature is to
report on original research or experimentation in order to make such information
available to the research.
According to Best and Kahn (1989), review of the related literature is the
summary of writings of recognized authorities and of previous research provides an
evidence that the researcher is familiar with what is already known, what is still
unknown and untested. Since effective research is based upon past knowledge, this
chapter helps to eliminate the duplication of what has been done and provides useful
hypotheses if needed and helpful suggestion for significant investigation.
The studies and literature gathered and reviewed will concentrate in:
1. Production Management. It refers to the application of management principles
to the productions function in a factory. It involves application of planning,
organizing, directing, and controlling the production process.

2. Inventory Management. It refers to the process of ordering, storing and using a
company’s inventory. These includes the management of raw materials,
components, and finished products.
3. Small Scale Business. It is marked by limited number of employees and a
limited flow of finances and materials.
4. Strategic Plan. It is the art of formulating business strategies, implementing
them and evaluating their impact based on organizational objectives.
Literature and Studies
Production Management
Production management helps the company achieve all of its targets. It produces
products which meet the needs and desires of the customers. Therefore, the company
will grow its revenues that would be a help to attain their goals. Control of production
aims to introduce new goods onto the market. It conducts research and development
that could help the company develop products of newer and better quality. Production
management serves other functional areas within an enterprise, such as marketing,
accounting, and staff. The marketing department will find it easier to sell good quality
products, and due to increased profits.
Production Management involves processes that presides the conversion of
inputs to outputs. The input basically comprises human resources such as raw
materials, machineries and instruments, capital, energy, information, and the likes. It is
concerned with the basic process of production, which is simply processing finished
goods based on the needs, demands or standards of the people (Akdeniz, C., 2019).
People refer the production management as bringing together the six M's: men, money,
machines, materials, methods, and markets. These components come together to
provide the consumers and businesses with products that they need or want. The
production management principles are also known as operation management principles.
They are designed to facilitate the production of goods that have arequired quality and
quantity (Jonathan Davies, 2019).
One of the components in the production management is selection of
product. Product selection is the process where in the retailor chooses the shape or
material of the product that will be used as per market demand (Vaibhav Bharambe,
2018). It is a real challenge for the organization to choose the right product(s) that will
contribute to the maximum value and ensures the alignment with the firms’ strategic
business objectives. In any company, product selection is an essential and critical
decision-making mechanism in order to select the best product to
fulfill the strategic organizational goals (Vijaya Bhaskar, Sirivella, 2015).
Another component in product management is the process selection which refers
to the way an organization chooses to produce its good or services. It takes into
account selection of technology, capacity planning, layout of facilities, and design of
work systems. Process selection is the extension after selection of new products
(Selection Process: Meaning and 8 Steps of Selection Process, 2018). Process
Selection plays a significant role in the overall design of Management Systems for
development and operations. It allows a company by proactive design and successful

capacity planning to provide a safe and secure product and service.
With the help of process selection we can understand the different types
of processing including manual, rigid, and flexible as well as various automated
approaches to processing (Process Selection: Types of operation, Intermittent
Processing, 2020) .
Another factor that can be consider under the production management is
production scheduling. One of the important factors for the resource efficiency, delivery
time and customer satisfaction of manufacturing companies has been identified as the
management capacity of workshop output scheduling. The accuracy, timeliness and
effectiveness of production scheduling is calculated by the design, execution,
adjustment, and completion of the production management cycle. The index model for
production scheduling management capability is developed which was guided by the
actual production data (Quande Dong, 2019).
The next component is production capa, it is the amount of goods or services
that an organization can manufacture utilizing the current resources (Production
Capacity law and Legal Definition, 2020). Managing a production facility means making
use of the storage space, equipment and staff to complete any order in as little time as
possible. The one obstacle faced by all production companies is their efficiency. True
capacity is the upper limit of the abilities of one part of the business. Managing the
equipment, machinery, and staff capabilities will keep the process flowing smoothly and
optimize your business' profit potentia. (Donahue, Danny, 2020). Another component is
the production planning. It is the process that takes place within the manufacturing
business. Production planning involves that sufficient raw materials, workers and other
necessary items are obtain and ready to create finished products according to the
schedule specified (Basics of Production Planning, 2018). Planning is the most basic of
all administrative roles within an organization. Setting targets and identifying strategies
for achieving them are necessary. Planning is about deciding what to do in future.
Effective and precise preparation is necessary for the survival of the garment
manufacturers in the present competitive apparel industry. Among the factors that make
precise production planning relevant are varying customer demands, shorter life cycles
and changing fashion trends (Dhaka: The Role of Production Engineering & Planning in
Apparel Industry; The New Nation, 2015).
Project planning can only be achieved if the people planning project, the
production management team, understand the speed of work required to achieve the
goals of the master schedule and believe that they can be accomplished. The
production management team will schedule the process so that each crew has enough
space and time to install their work in a secure and proper manner (Fischer, M.,
Ashcraft, H.,Dean, R., Khanzode, A., 2017). Proper quality planning is used to eliminate
flaws in the product's manufacturing process and prevent the company from going
through the period of failure whether in the case of money or the prestige that the
company has built over the years of work (Akdeniz, C., 2019).
In production management it is also important to guarantee the health and safety
of workers and reduce the likelihood of injuries and incidents at work, it is important to
assess the standards of safety management of the production to businesses. As a
safety management tool, behavior-based safety (BBS) can enhance workplace
emergency response capabilities, reduce accidents and occupational injuries, correct

people's dangerous behaviors, and improve the environment and efficiency of
employees’ safety (An Assessment Model of Safety Production Management Based on
Fuzzy Comprehensive Evaluation Method and Behavior-Based Safety, 2019).

Part of production planning is the strategic plan of the business. Marketing
strategies, as discussed further, play important roles in every company or institution.
Each technique and strategy employed will have either a positive or a negative impact
on the company. Production, distribution, pricing, and marketing methods are employed.
The price, quality and product types are mostly the basis of strategies for these three
which the customers are looking for (The Strategies of Tiangge Sellers to the
Purchasing Interest of the Market, 2018). Supply chain management is one of the
important strategic elements of business organizations. Managing the manufacturing of
the company's goods and services, tracking stock inventories, contacting suppliers and
ensuring the timely distribution of goods are some of the main supply chain
management activities (Effectiveness of Supply Chain Management with Reference to
Apparel Industry: A Case Study in India, 2016).
Another component is the production control that includes systematic planning,
scheduling and direction of production management of all manufacturing operations and
factors to ensure goods are made on schedule, of sufficient quality, and at reasonable
cost (Merriam-Webster, 2020). Production control is the management function which,
through the entire production system, plans, directs and controls the material supply
and processing activities. In any manufacturing firm wishing to maintain a high level of
service with minimal inventory and minimum cost, effective control systems are
essential (Production Control Systems: A Guide to Enhance Performance of Pull
Systems; Khojasteh, Y., 2015).
The inventory control is also one of the components in production management.
Inventory control is the mechanism used to optimize the use of resources by an

organization. The goal of inventory control is to achieve maximum profit from the least
amount of inventory expenditure without impacting the levels of customer satisfaction
(Inventory Control, 2019). The venture's success depends on its ability to provide clients
or users with services, which remains financially viable. The main activity for an
organization which supplies its customers with goods is to have suitable products
available at an acceptable price within a reasonable timeframe. Inventory allows a
company to assist customer service, distribution or production in cases where the
purchase or produce of the products that could not meet the demand (Wild, Tony 2017).
Inventory Management
An inventory management is the process of tracking down the supplies of a
certain company. It includes the raw materials, work-in-process, supplies used in
operations and also the finished goods. Keeping an eye or having an inventory is a
good thing to monitor the supplies that a company has. It is a good way on having such
a systematic way to keep track on what does a company lack of or exceeds of. Supplies
are very important to a company that's why a good inventory is also needed (Max
Muller,2019). Management and route optimization are combined in the inventory routing
problem (Baller, AC, van Ee, M, Hoogeboom, M, Stougie, L. 2020). Management is a
set of policies that are used to enhance the efficiencies of the business in using the
product and to reduce its associated costs. Inventory management strategies only
function effectively within the normal market climate. The typical decisions do not lead
to optimality when the manager faces a disturbance (Taleizadeh, A.A., 2017).

Inventory can be a simple or a crucial thing. It can be compared as a basic
service or need of a company, or as compound as different mixture of raw materials that
needs to be incorporated as a part of manufacturing process. The flow of an inventory
depends on how will it be done. If it is not systematic then it wouldn't be simple, but
even if it is complicated, inventory is still part of the manufacturing process and it should
be considered (Max Muller,2019). We consider a question of inventory distribution,
where a retailer ships goods to consumers over a given planning period (Archetti, C.
and Speranza, M.G. 2016) It plays a critical role in stochastic inventory management,
since it is directly correlated with inventory efficiency, such as stockout probability, fill
rate, and anticipated backorder (Jin, T. 2020).
Inventories or stock are those goods or materials that are owned by a specific
organization or company that has future purposes or can be sold. These stocks need to
be under inventory so that the organization knows all what are the goods and materials
they have (Mapes, J. 2015). Inventory management is the act of keeping track of the
stocked goods in a company and monitoring their weight, dimensions, quantities and
location. The objective of inventory management is to minimize the cost of holding
inventory by helping business owners know when it's time to replenish products, or buy
more materials to make them. Making the stock goods in a company is one way or a
simple way to monitor the number of stocks (Casandra Campbell, 2018). In every
business it has to have a management of cash flows and inventories, even if its small or
medium enterprises, simply because it has a good role in a business word cash flows is
really important to monitor because the company should know where the money go,
also inventories that is also one of the important thing in a company or every
businesses because all of the material, for instance raw materials and finished product
need to be monitored and inventoried (Katehakis, M.N., Melamed, B. and Shi, J. 2016).
It is often known as stock or inventory control is meant to track the stock at any
given point in time. Not only this, it also deals with stock upkeep and keeping track of
any surplus or deficit. for instance, knowing and keeping the control of inventory is a
good way to sustain having a better product (Talatu Muhammad Barwa, 2015)
Performing inventory is not that easy because there are some things that needs to be
considered such as some parameters. There are 5 parameters to be considered in
order to perform an inventory management simulation such as: economic parameter,
related parameters on how the company works, parameter for staggering supplies,
parameter of customer demand, initial conditions and parameter related to simulation
(Coch, g., 2019).
Inventory management's goal will be to clarify the complexities of the principles,
concepts, and strategies of inventory management as they apply to the entire supply
chain (customer demand, distribution, and processes of product transformation). This
will describe the interrelationships of all functions (Toomey, John 2020). In an
environment where manufacturing is happening, inventory sometimes has been
overlooked or sometimes disregard because they are working in a manufacturing
environment where everything is fast-paced that's why the supplies are used
immediately and here's no time for inventory (Max Muller, 2019). In order to achieve an
efficient and sustainable supply chains as well as material flows, good and manageable
inventories are needed. Having a good flow of inventories is one great factor of attaining
these (Marklund, J. & Berling, P. 2017).
The present disclosure provides a system for inventory management which offers
significant improvement over existing systems by automating inventory restocked
requests. The present report outlines an inventory management system that provides
real-time access to stock levels and streamlines materials management operations
while addressing issues of misallocation of human resources, inadequate inventory data
management and related out-of-stock situations. In addition, the present disclosure
system promotes a high level of confidence in inventory data which allows for a
reduction in on-hand inventory levels, thereby reducing costs and waste. the purpose of
inventory management system is to have a time to time update of everything in a
company or in a firm. Using the systematic approaches, it would be easier to them to
tract those data (Olson, J., et al. 2015) For retailers, inventory management is such a
crucial factor, it can be compared to capacity management which is a crucial factor also
for an application services provider (Eric Bauer, 2016).
When it comes to practical setting of inventory management, it is not easy and
actually it faces some challenges. There are some restrictions when it comes to storing
supplies and changing stocks of product. If stocks were not in the proper place or does
not have proper storage, there would be some problems on managing the inventory and
also changing the stocks if it doesn't inventory in good way (Sharma, S., Abouee‐
Mehrizi, H. & Sartor, G. 2020). During a natural disaster in this kind of situations,
demand is higher than supply that affects on providing goods and services. Inventory
allocation issues are usually faced during this kind of event. One great solution in this
situation is always be ready on any situation but remember do not hoard stocks when
natural disasters occur (Morrice, D.J., Cronin, P., Tanrisever, F. & Butler, J.C. 2016).
It has a big role in a firm when it comes to the changes in the demand especially
if it is rapid. The firms simply define inventory management as a season of demand that
can be change or not (Wang, Z. & Mersereau, A.J. 2017). It is having a starting
inventory factor can control the number of data on the next period, aside from that order
levels get high in the starting inventory (Becker‐Peth, M. et al. 2019)
Small Scale Business
Small scale businesses is part of vast variety of services and goods’ provider.
They have been share a large market in the economy even they are small. It is
characterized as low initial investment and has a few set of employees to regular sized
business. It is generally owned by private persons who mostly has trading kind of
business. Small scale business does not need huge capital to start and make one. It
needs knowledge and commitment. But why small scale business is important in
economy? What are the challenges that the owners might encounter?
Small scale business create an opportunities even though it is small it can still
provide jobs and help the community. One of the example is a woman makes soap as a
hobby and they recognize her work and encourage her to build a workshop.
Recommended to be a “light manufacturing” and be small-scale business (Sobey, R.,
2017). This include women empowerment, few societies do not accept females in some
jobs, but this gave them opportunities to their growth. This create jobs that can solve
small percentage of under the threshold and give them opportunities to satisfy their
needs. (Unemployment; AllAfrica, 2015; The Balochistan Times, 2019).
Small scale business gets a support from everyone, including the government.
This help them to improve economy. According to Committee Chairperson Ms. Ruth
Bhengu (2015), “We feel strongly that the regulation will address issues of unfair
business practice in this sector and ensure that owners also contribute to the tax
revenue," (AllAfrica Media, 2015). To make an impact on economy, changes are
needed and local governments need to stay active about ruling and giving benefits to
small scale business owners.(Ghana News Agency, 2018) She also added, "The
emergence of foreign nationals demanded that local business owners have a better way
of organizing themselves and the development of tailor-made support services from the
Department. Wholesalers also compete in this space, making the playing field uneven,".
(Ruth Bhengu, 2015). Government also taking an action on persuading financial
institutions to lend small business owners to improve and invest more in their business.
(AllAfrica Media, 2017; The Hindu, 2017) One of this is Ministry of Micro Small and
Medium Enterprises (MSME) in India. It is promoting the cluster development programs
for MSMEs so that they can grow, increase their productivity and contribute better
towards increasing the GDP of the country (The Economic Times, 2019; The Economic
Times, 2019).
Bankers are encouraged to lend small-scale business to loan; Mr. Franco, in an
interview with The Hindu said that much of the small credit lending had drastically
reduced. (The Hindu, 2017) According to him, “From 1969 to 1991, the focus was to
ensure that the priority sector received 40% of the total lending. Post-liberalization, with
extensive policy changes, the definition of the ‘priority sector' changed,” he said. “We
need to educate bankers and the public on encouraging small borrowers. We see
growth but not real development. In order to change this situation, we must increase job
opportunities and ensure access to education,” he added. Some are just promoting
Microfinance, microcredit and microloans because it can also help impact on stock,
sales, expenses and profit of small-scale business. (John Wiley & Sons, Ltd, 2015; The
International Journal of Transport & Logistics, 2018; AllAfrica, 2015; Ghana Journal of
Sustainable Finance & Investment, 2018).
The growth of business does not depend on government only, it has various
variables that needed to be consider if the goal is to succeed. "The sales performance
of a business is measured by enlisting the number of products sold and by defining the
number of customers a business holds along with the market position it occupies, the
creditworthiness of the business, and a number of other factors," (Chalotra, V., 2015).
Small businesses are being held back by variation of problem like heavy
taxations. If we use Philippines law of taxation, new established businesses are
exempted in paying tax for 2 years. This ruling is favor to small scale business they
need to effectively use this window to improve the business. If they fail to do that
taxation will burden their growth and stay constant (Multiple taxation; Mrs. Bintu, 2015).
Even broadband and in mobile connections, according to new research by the
Federation of Small Businesses (Targeted News Service, 2019), this cut the connection
between customers and your business. (Targeted News Service,2019) It is important if
you are able to communicate to your market of choice. This small problem can make an
impact on how you market your business, because lot of business are dependent in
social media platforms to sell products.
According to Saumu Jumanne, “As things stand, I think only members of
parliament can save many small businesses from forced closures for failure to meet
regulatory requirements. It seems the age of overregulation for businesses has finally
downed in dear motherland. If parliament does not come out openly to defend traders,
many will be choked out of business, or all the effort of the last two decades
championing business formalization will go down the drain.” (Saumu Jumanne -1.,2017)
To achieve that Small business need datas, research and this are usually used by big
companies who spend fortunes to improve their product and image in public. (The
Citizen, 2019)
Small scale businesses are getting support from different institution to help them
to grow, having ICT that can improve management of business, solar panels to lessen
the electric consumption these are part of economy increase rapidly. (Ghana News
Agency, 2016-2017). This are the formula for success of one big company called
Amazon, they are using it to get insight what market wants (Mwanachi Communications,
2019). Small business owners or entrepreneurs need seminars to help them in business
activities and how to manage their business (Journal of Business Research, 2016).
Strategic Plan
The fast-paced, volatile, and ambiguous environment in which organization
operates today requires a strategic planning approach. But what is a strategic plan?
Strategic plan is the art of formulating business strategies, implementing it and

evaluating its impact based on organizational. Strategic plan is an organization’s
process of defining its strategy or direction and making a decision on allocations of its
resources to pursue a strategy. It includes the process of formulation and
implementation. It is one of the important aspects in an organization even in a small-
scale business. It is important because it provides a sense of direction and outlines to
measure goals. It is a tool that is useful for guiding a day to day decisions and for
evaluating progress and changing approaches when moving forward.
It is a more common approach in governments worldwide (Ferlie & Ongaro
2015). It is open to organizations or groups of organizations; intra-organizational
functions (e.g. financial or human resources); inter-culture networks that aimed at
performing specific functions, such as transport, healthcare, education, and emergency
services also to locations ranging from local to regional to cross-border (Albrechts,
Balducci and Hiller, 2016). Strategic planning is the method of recording your small
business and setting a direction – by determining where you are and where are you
going. It gives you a place to document your purpose, vision and principles, as well as
your long-term goals and the action plans you will be using to accomplish them (The
Hartford Smallbiz Ahead, 2020).
According to Flamholtz & Randle (2015), strategic planning has three critical
aspects: strategic issues, the flow process of itself and the components of the strategic
plan. It is responsible for designing the organization’s global leadership. The classical
strategic formulation methodology is based on the logical strategy, distribution of
resources and productivity approaches. The layout is in line with the plan of Chandler
(2020). The correct framework is easily identified if the strategic plan is defined. The job
of the strategic planning process in the ongoing generation of creative information is
essential to a company’s survival and development, particularly with rapidly changing
technologies and market conditions (Strategic Management. J., 38: 1741-1752, 2017). It
involves developing business models, corporate direction, competitive tactics,
international strategy, acquisitions and collaborative action (Strategic Management,
2015).
Strategic management that involves planning is a key factor in an organization’s
performance, according to Khoshtaria, Tornike’s report about “The Impact of Strategic
Planning on Organizational Performance through Strategy Implementation.” (2015) It is
also an analytical process and can lead to better strategic decisions (Elzamly, 2015). It
has a negative impact on creative operation but has a positive effect on productivity for
the average business. It can be used to achieve both high investment returns and a
high-level creative activity (Strategic Planning as a Complex and Enabling Managerial
Tool, 2017). According to The Hartford (2020), despite the advantages of having a
strategic plan in a place, an increasing number of small business owners do not focus
on their business’ long-term strategies. 63% (percent) said that they plan only a year (or
less) in advance in a 2018 Constant Contact survey of 1,005 small business owners.
Strategic planning can and is always part of broader strategic management
activity that constantly connects preparation and execution (Bryson, J. 2017). To ensure
successful executions, researchers need to execute the actions, direction and monitor
the performance of process of setting the goals. It is defining the actions to achieve the
goals, allocate and monitor the performance (T.C. Wilson (Ed), 2015). Strategy that
should be made by the researchers should be made with the assistance of strategic
planning and analytical techniques (The Impact of Strategic Organization Performance
Strategic Planning Process, 2016). After examining the role of formal strategic plan,
they noticed that the strategic planning plays an important role in determining the
success of strategy implementation in a set of more than 150 public service
organizations from Canada (Elbanna, Said & Andrews, Rhys; Pollanen, Raili 2016).
Study suggests that the formal strategic planning has a strong positive relationship with
implementation (Strategic Planning and Implementation Success in Public Service
Organizations: Evidence from Canada, Public Management Review, 2016).
A proactive marketing approach allows an organization to allocate resources to
encourage practices that helps realistic development (Perkins, Bradford et.al, 2017).
Strategic planning has become increasingly and it remains critical to stay ahead of
competition (Pessima, J.D & Dietz, B., 2019). Its effectiveness and implementation is
affected by the quality which refers to the skills, attitudes, capabilities, experiences, and
other characteristics of the people involved in a required specific task or position
(AlKhateeb, 2015; Ridwan, 2015) The strategic planning strategies should also identify
membership-centric initiatives that can continue to grow the organization from
identifying new move in a new and emerging direction to identifying new members for
which new programs and services are needed for the association to be established.
(Metter, K. 2016)
An article presents a review and analysis of empirically based strategic
management studies in non-profit organizations that appeared in peer-reviewed
publications between 1998 and 2015 and compares these results to an earlier, related
study to determine how non-profit strategic management evolved over time (Miller, Eric.
2019).
Synthesis
Researchers on review of the related literatue gathered data using the different
articles, journals and books. The data that was gathered by the researchers, most of
them are favorable and supports the study. Researcher noticed that the inventory
management is not only by storing the materials of the organization, it is also a tool to
see if the demand gets high and the supply is stable. Proper inventory control could
help them to use their profit wisely.While in production management, it could help
businesses on how they will manage their business in terms of selecting products that
they are going to produce. Strategic plan is the output that will be made by the
researchers. It provides sense of direction and measure the goals. It is also useful for
the day-to-day decisions
The researchers review of the Related Literature has been made, it was
observed that there are no study that has found out to study the same topic. The
researcher focuses on small scale businesses in Taytay, Rizal which is known as
tiangge. The study would help the stall owners in Taytay Tiangge how to manage the
production and sales of their apparels. Since it has variety of customers, this would be
an advantage for them. Following the trend can also be use as their strategy to produce
products that can attract the attention of the customers and grow their profit .
Reference Notes
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Becker‐Peth, M. et al. Multiperiod Inventory Management with Budget Cycles: Rational
and Behavioral Decision‐Making. Production and Operations
Management ( 2019), https://doi.org/10.1111/poms.13123
Katehakis, M.N., Melamed, B. and Shi, J.(. (2016), Cash ‐Flow Based Dynamic
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Wang, Z.(. and Mersereau, A.J. (2017), Bayesian Inventory Management with Potential
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Morrice, D.J., Cronin, P., Tanrisever, F. and Butler, J.C. (2016), Supporting hurricane
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Operations Management, 45: 86-100. doi:10.1016/j.jom.2016.05.006
Sharma, S., Abouee‐Mehrizi, H. and Sartor, G. (2020), Inventory Management under
Storage and Order Restrictions. Prod Oper Manag, 29: 101-117.
doi:10.1111/poms.13097
Eric Bauer, "Application Capacity Management as an Inventory Management Problem,"
in Lean Computing for the Cloud , , IEEE, 2016, pp.105-118
Marklund J., Berling P. (2017) Green Inventory Management. In: Bouchery Y., Corbett
C., Fransoo J., Tan T. (eds) Sustainable Supply Chains. Springer Series in Supply
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Toomey, John.(2020)Inventory Management Sustainable management of inventories

aims to reduce an industry's environmental and social impacts without impacting its
productivity. Journal of Cleaner Production Volume 192, 10 August 2018, Pages 281-
292
Talatu Muhammad Barwa. Inventory Control as an Effective Decision-Making Model
and Implementations for Company’s Growth. International Journal of Economics,
Finance and Management Sciences. Vol. 3, No. 5, 2015, pp. 465-472. doi:
10.11648/j.ijefm.20150305.18
Casandra Campbell(2018). You're Probably Losing Money By Not Using These 8
Inventory Management Techniques
Coch, g.,(2019) Introduction to Stochastic Processes and Simulation
Mapes, J. (2015). Inventory Management. In Wiley Encyclopedia of Management (eds
C.L. Cooper, S. Roden, M. Lewis and N. Slack).
doi:10.1002/9781118785317.weom100104
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Engagement, and Affiliation. In Membership Essentials, S. Jacobs (Ed.).
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THE MARKET
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PRODUCT SELECTION
1. L. J. POLYTECHNIC, AHMEDABAD SUBMITTED BY: VAIBHAV BHARAMBE
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Development PRODUCT SELECTION
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Chapter 3
RESEARCH METHODOLOGY
Introduction
This chapter is an important part of the main research. This is the portion that
deals with the presentation of the methods implemented to gather data and how the
actual research work will be conducted by the researchers. The purpose of this chapter
is to discuss and explain the method adopted by this research. This chapter will mention
every component involved in conducting this research from population. This study will
be conducted to gather insights, identify, define, present, interpret and analyze the data
relative to the evaluation of Inventory and Production Management Practices of
Selected Small Scale Businesses in Taytay, Rizal: A Basis for Strategic Plan.
Research Design
Research design means a structure to plan and execute a particular research. It
can be considered as the structure of research, it is the “glue” that holds all of the
elements in a research project together, in short it is a plan of the proposed research
work. The researcher will use the descriptive method of research. This method will be
used in fact-finding study to find the accurate.
Research Setting
This study will be conducted in Taytay, Rizal. Taytay has the municipality’s
population as of 2015 of 319,104 and it is the third Most Populous Municipality in the
Philippines. It has a total land area of 38.80 sq. km. 14.89 sq. mi. The researchers will
be gathering data specifically at Club Manila East Compound Brgy. San Juan Taytay,
Rizal, 1920 or in Taytay Tiangge Freedom Bazaar.
Location Map
Respondents
The research respondents of this study is composed of five (5) small scale
businesses in Taytay Tiangge. The researchers select five (5) stalls from Freedom
Bazaar. The researchers wanted to know the Production and Inventory Management
Practices of selected stalls in Taytay Tiangge Freedom Bazaar.
Instrument
The instrument used was a researcher-made questionnaire checklist to gather
the needed data of the study. The draft of the questionnaire was drawn out based on
the researcher’s readings, previous studies, literatures, published and unpublished
thess relevant to the study. The questionnaire contained the letter to the respondents
and question proper. The answer given by the respondents will be kept confidential.
Validity and Reliability of the Instrument
The data gathering, collection, and interpretation and analysis of the data
collected were accomplished with credibility, truthfulness, reliability and validity. This
study was credible enough since the data used was both primary and secondary. Those
are products of instrument analysis, items validation, pre-survey, survey, literature
review and theories analysis. The validity of the survey instruments used by the
researchers was assured to comply with the valuable items in the questionnaire.
Statistical Treatment
To interpret the data effectively, the researcher will employ the following
statistical treatment. The Percentage and Weighted Mean are the tools used to interpret
the data.
1. Percentage
This will employ to determine the frequency counts and percentage distribution of
personal related variables of the respondents.
F
Formula: %= x 100
N
% is the percentage
F is the frequency
N is the total number of respondents
100 is a constant value
2. Average Weighted Mean
This will be use to determine the assessment of the respondents with regards to
their personal profiles.
Fx
Formula: X=
N
X is the weighted mean
F is the frequency
x is the weight of each item
N is the number of variables
Reference Notes
Best Taytay. (n.d.). Retrieved February 8, 2020, from https://www.taytayrizal.gov.ph/about-best-

taytay
Name of the Stall: __________________________________

Store Hours: ___________________________
Direction: Put check (/) for your corresponding answer.
BOTTOM WEAR
1. In what quarter of the year has the most number of sales?
o January to April
o May to August
o September to December
2. In what quarter of the year has the least number of sales?
o January to April
o May to August
3. In what quarter of the year you produce the product mentioned above more
often?
o January to April
o May to August
4. In what quarter of the year you produce the product mentioned above least
often?
o January to April
o May to August
5. In terms of inventory management practices in your store, is the technique used
to evaluate the inventory is best for your business?
o Yes
o No
6. Are all purchase order transactions are completely prepared and recorded on a
timely basis?
o Yes
o No
7. How do you rate the delivery activity of your store?

o Very Effective
o Average
TOP WEAR
1. In what quarter of the year has the most number of sales?
o January to April
o May to August
2. In what quarter of the year has the least number of sales?
o January to April
o May to August
3. In what quarter of the year you produce the product mentioned above more
often?
o January to April
o May to August
4. In what quarter of the year you produce the product mentioned above least
often?
o January to April
o May to August
5. In terms of inventory management practices in your store, is the technique
used to evaluate the inventory is best for your business?
o Yes
o No
6. Are all purchase order transactions are completely prepared and recorded on
a timely basis?
o Yes
o No
7. How do you rate the delivery activity of your store?
o Very Effective
o Average
Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
The chapter findings. These are presented in presents the data gathered, the
results of the statistical analysis done and interpretation of findings. These are
presented in

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SUMULONG COLLEGE OF ARTS AND SCIENCES

SCAS Building, M.L Quezon Ext. Brgy. Dalig, Antipolo City

PRODUCTION AND INVENTORY MANAGEMENT PRACTICES OF

SELECTED SMALL SCALE BUSINESSES IN TAYTAY, RIZAL: BASIS

FOR BUSINESS STRATEGIC PLAN

Prof. Eleonor Aguilando

Inabayan, Rixie Kate

Sanchez, Erick James

THE PROBLEM AND ITS BACKGROUND

contrast to the quiet residential quarters.” - (Britannica, Bazaar,.2020)

Taytay is one of the municipalities in Rizal. It is known as the “Woodworks and

clothes to the eminent manufacturers or fabricators of wooden architectural products.’’ –

(Taytay Rizal Government, 2020)

The Taytay Tiangge is considered as an economic central located at the uptown

municipality of Taytay, Rizal Philippines. It became a phenomenon as the place was

businessmen all over the Philippines.

quota. Inventory management is a systematic approach to sourcing, storing and selling

inventory of both raw material and finished goods. (Tradegecko, 2020)

Background of the Study

past years, in 2008. (Taytay Rizal Government Philippines, 2020)

Hon. George Ricardo R. Gacula II, to negotiate and enter a Memoramdum of

dresses) represented by its President Evelyn Domingo, to have a fleamarket (tiangge)

an initial of 400 registered retailers. (Best Taytay, 2020)

As of 2015, the population of Taytay, Rizal is about 319,104 people. ( PhilAtlas,

also benefit future researchers as their reference guide.

Statement of the Problem

management practices of selected small Taytay Tiangge Stall owners. Specifically, it

will seek answers to the following questions:

3. What month is the peak season of Taytay Tiangge stall owners?

4. What month is the least season of Taytay Tiangge stall owners?

5. What kind of apparel has the most sales?

Scope and Delimitation

The study focuses on the production and inventory management practices of

fiscal year 2020.

Significance of the Study

and least season.

Researchers. It can help the researchers to gain a knowledge about the

Government. It will help primarily to raise revenue for government expenditures

and improve government services.

Community. It will help the community by providing employment opportunities.

future business owners.

Fig. 1 Bottom of the Pyramid Theory

Fig. 2 (Inventory Control)

owners in Taytay, Rizal is doing.

Fig. 3 (Theory of Production)

According to Intelligent Economist, The Theory of Production explains the

each holiday season tiangge owners’ producing.

affect the production and inventory management.

The PROCESS refers to the assessment on the production and inventory

analysis of data gathered, survey questionnaire and statistical treatment.

The OUTPUT or the outcome of this research is an improved production and

inventory management of small scale businesses.

INPUT PROCESS OUTPUT

Basis. The underlying support or foundation for an idea, agument or process.

Bazaar. A market consisting of rows of shops or stalls selling miscellaneous

Businesses. Tiangge in Taytay, Rizal; organized efforts and activities of the

individual to produce and sell goods and services for profit.

Inventory. Quantity of goods owned and stored by a business that is intended

either for resale or as raw material.

Management. Administration of the business, the process of delaing with or

controlling things of people.

Practices. Tactic or activity a business conducts to reach its objectives. The

atual application of method.