RAMON MAGSAYSAY MEMORIAL COLLEGES

Bachelor of Science in Customs Administration

General Santos City, Philippines

A DESCRIPTIVE-CORRELATIONAL RESEARCH PAPER

PRESENTED TO

THE FACULTY OF THE COLLEGE OF BUSINESS EDUCATION

RAMON MAGSAYSAY MEMORIAL COLLEGES
GENERAL SANTOS CITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

IN WAREHOUSE OPERATIONS MANAGEMENT
(SCM 2)

INVENTORY MANAGEMENT PROCESSES AND CUSTOMERS

SATISFACTION OF SLECTED MERCHANDISING COMPANIES IN GENERAL
SANTOS CITY

BY:

JUSTIN DAVE DUMDUM

2022
 CHAPTER I

INTRODUCTION

This chapter consisting the background of the study, theoretical

framework, conceptual framework, statement of the problem, hypothesis, scope

and limitations, significance of the study, and definition of terms.

Background of the study

Inventory management referred to the tracking and controlling of business

inventory, including purchased products stored and manufactured in

warehouses. It was a part of the supply chain that governed the flow of products

or goods, from the purchasing stage to the sale. The aim was to ensure that the

right quantities of the right items were in the right location at the right time.

Inventory could be raw materials, already made products, or even intangible like

services and programs. Every organization had inventory, making it crucial for

organizations to understand the supply chain or inventory management process

(Fararishah Abdul Khalid, 2018).

Inventory management had three benefits. First, it saved businesses from

spending too much money, as understanding stock trends was vital in not losing

the value of assets. Second, it helped improve cash flow, as proper inventory

management resulted in businesses spending money on inventory that sells,

leading to an overflow of cash. Third, customers were satisfied, and it was crucial

to building a relationship with customers to increase loyalty, which meant an

increase in sales revenue (Abby Jenkin, 2019). Understanding the process of

inventory management, purchase on demand it starts when the merchandising

companies receive customers order and continue until the order is ship. The

process begins when you forecast your demand and then place POs for the

required raw materials or components. Other parts of the process include

analysing sales trends and organizing the storage of products in warehouses. In

other hand, customers satisfaction is a measurement that determines how happy

customers are with the merchandising companies service or products. As

merchandising companies, it is important to secure the quality of your product

purchase and the effects of it to your customers.

Therefore, a study entitled "Customer Satisfaction on the Quality Services

of One Department Store in Batangas City, Philippines" by (Anna Margarita M.

Agulo1, Katrina M. Agno1, Alex C. Andres Jr. et.al, 2018) stated that one

department store in Batangas City had received positive client feedback for its

exceptional service. The study aimed to determine the degree of customer

satisfaction with the department store's quality service in terms of employee

professionalism, customer relations, customer service, and facilities. It

investigated the relationship between respondent profiles and customer

satisfaction and suggested a course of action to raise customer satisfaction.

The descriptive study had a total of 100 respondents, and the findings

indicated that customers were happy with the department store's level of

customer care. As a result, management may regularly orient and train staff in

customer relations and services to ensure complete client satisfaction. The goal
of the researcher was to determine the level of inventory management processes

towards customer satisfaction among merchandising companies in General

Santos City. Additionally, in finding ways to further understand the relationship of

the two variables, it was believed that a flexible cross-channel indicator to assess

the retailer's strengths and weaknesses was customer satisfaction.

Theoretical framework

This study is anchored to two (2) theories, the Inventory

management theory by (Samal and Pratihar 2014) and (Jablonský, Lukáš,

Kořenář 2015). Another the customers satisfaction (csat) theory by (Milly Kim,

2019). This utilized as ground to support the theory of this study and serves as

guide in evaluating the research problem and questions.

Inventory management theory

Inventory (or stock) plays a significant role in the supply chain from a

business standpoint. in mind. The supply chain is impacted by a variety of

variables, including the stock cost level across the entire supply chain (and not

just in a specific business), specifically their minimization in the areas of

inventory storage and maintenance quest of maximum demand satisfaction while

also maximizing the supply chain (Samal and Pratihar 2014).

The understanding and nature of demand are crucial for the overall

management of inventories. There are essentially three ways for demand

modeling. Deterministic demand modeling, where its explicit expression is

known, is one of them. The demand function can be a polynomial of general

degree in function, a linear demand function, or any other known function. It

simply depends on the model's reference situation.The demand function for

deterministic inventory models can either be estimated or approximated. These

inventory models are predicated on the idea that the volume of demand and the

cycle of procurement are predetermined. Knowing the exact volume of needs to

be met out of inventories, even notwithstanding the random variations in

deliveries from suppliers, it is pointless to create any safety stock. Therefore, all

of the deterministic models only optimize certain inventory turnover ratio and a

cost optimum is searched only by means of storage costs and one-off costs to

replenish inventory (Jablonský, Lukáš, Kořenář 2015).

Customer’s satisfaction (CSAT) theory

Customer satisfaction (CSAT) is a frequently used KPI that measures how

satisfied consumers are with the goods and/or services provided by your

business. It is a psychological state that is determined by the expectations of the

client. You can significantly increase your customers' brand loyalty by being

aware of what they expect from your business.

Customer or consumer satisfaction is a general psychological state that

reflects the assessment of the relationship between the company, environment,

product, or service, and the customer or consumer. One of the following three

psychological components—cognitive (thinking/evaluation), affective

(emotional/feeling), or behavioral—is involved in satisfaction. Expectations are

beliefs (likelihood or probability) that, given certain anticipated levels of

performance based on prior affective, cognitive, and behavioral experiences, a

product and/or service (containing certain attributes, features or characteristics)

will produce certain outcomes (benefits or values). Expectations can be

measured as follows and are frequently linked to satisfaction

Without knowing what your customers think or feel about your goods or

services, it is impossible to develop a devoted customer base. To successfully

meet your customers' expectations, it's crucial to measure customer satisfaction

effectively. Perceived product/service quality is the single best indicator of

customer satisfaction. This is determined by how well your customer's needs are

met, how trustworthy your brand is viewed to be, and how well their needs are

met overall. Customer brand loyalty, satisfaction with a particular product feature,

and propensity to make another purchase are additional satisfaction factors.

(Milly Kim, 2019).

Conceptual framework

The conceptual framework of this study is illustrated through a research

paradigm based on how the different variables interplay of the different theories

and model presented.

The process of ensuring that a company's goods or services meet

established quality standards is referred to as quality control. It entails checking,

testing, and making sure that the goods or services meet the desired quality

standards. The measurement and analysis of a company's sales team's

 performance is referred to as sales performance. In order to evaluate the sales

strategy's efficacy, it includes monitoring sales growth, revenue, and other

performance indicators. The process of forecasting and managing a company's

product or service demand is referred to as demand planning. In order to

estimate future demand and plan inventory levels and production schedules in

accordance with it, it involves analysing historical sales data, market trends, and

other factors.

Independent Variable Dependent Variable

Quality Control

Sales Performance Customers satisfaction

nd Planning

Statement of the problem

The general objective of this study is to determine the inventory

management processes and customers satisfaction of selected merchandising

companies in General Santos City. Specifically, it aims to answer the following;

1. What is the level of inventory management processes among merchandising

companies in terms of:

1.1 Quality Control

 1.2 Sales performance

1.3 Demand Planning

2. What is the extent of customers satisfaction towards inventory management

processes merchandising companies?

3. Is there a significant relationship between the inventory management

processes and the customer’s satisfaction among merchandising companies?

4. Among the factors, what is the most influential to customer’s satisfaction?

Hypothesis

From the problem stated, the following null hypotheses were formulated

and will be used to draw out if it will be accepted or rejected that corresponds to

the result of the study:

H01: There is no significant relationship between the inventory management

processes and customers satisfaction among merchandising companies.

H02: There is no significant relationship between the quality Control of inventory

management processes to customer’s satisfaction.

H03: There is no significant relationship between the sales performances of

inventory management processes to customer’s satisfaction.

H04: There is no significant relationship between the demands planning of

inventory management processes to customer’s satisfaction.

H05: There is no factors that influence customers satisfaction.

Scope and Limitations

This study focuses only on determining the level of inventory management

processes, and the extent of customer’s satisfactions towards inventory

management processes among merchandising companies. The study started 1 st

week of August and will end in December. To simplify, the independent variables

which includes the; Quality accuracy, sales performance, and the demand

planning. Whereas the dependent variable is the customers satisfaction among

merchandising companies in General Santos City.

Significance of the study

This study will be significant to the following beneficiaries:

Merchandising companies. This study helps merchandising companies

with their ratings. Improve services and innovate newly program for employees

and customers. Increase in sale revenue and increase in customers loyalty.

Employees. This study helps employees to increase their productivity in

work. Higher productivity means greater service and value to future customers.

This will also improve their communication towards customers and promote

continued success.

Academe. This study contributes knowledge to educational institutions

since academe is considered to be a place where knowledge and wisdom is

shared. This will also help the academe to welcome new opportunities that
related to inventory management processes or in general business management

area.

Researcher. This study helps the researcher to understand the processes

of inventory management and its effects to customers satisfaction among

merchandising companies. Researchers will be guided to their taken path and

will be more knowledgeable.

Future researcher. This study will act as a medium of future researcher,

guidelines with their thesis paper, and will provide some gap to their paper. This

can be also a reference in case the study of future researcher is inclined to the

study of present researcher.

Definition of terms

The key terms used in this study will be defined operationally below. This

is defined for better understanding of the readers.

Customers Satisfaction. This is the measurement of how happy the

customers are with the merchandising companies’ services or products. This can

be a different form; it might be a survey or ratings. Operationally, this term is

used in the research to determine the customers satisfaction towards inventory

management processes. Customers satisfaction is important because it can be

used as feedback that can improve the business and services. (Alaina Franklin,

2021).
 Demand Planning. Demand planning is a method used in supply chain

management to estimate or predict product demand in order to make sure they

can be delivered and please customers. The objective is to maintain a balance

between having enough inventory to meet consumer demand without having an

excess. Operationally the term is used in the research to determine the level of

inventory management processes in terms of demand planning. (Demand

planning help the business to be put in plan. Avoid wasted stocks and alleviate

over stocking of products. (Lim, 2021).

Inventory Management processes. Inventory management is a field of

supply chain management which is defined as one of the complicated tasks of

humanity. Inventory management consist of three parts, the resourcing,

production, and delivery. Operationally, this term is used in the research to

determine the inventory management processes of merchandising companies.

Inventory management help businesses prevent products to be stock out, helps

in managing location, and helps in record keeping. (FishBowl, 2018).

Merchandising Companies. One of the most typical business types is a

merchandising company. A company that buys finished goods and resells them

to customers is known as a merchandiser. Think about your neighborhood

supermarket or clothes retailer. These two businesses deal in merchandise.

Operationally, the term is used in the research to determine the customers

satisfaction towards inventory management processes among merchandising

companies in General Santos City. Merchandising companies have numerous

contributions, first it can increase the sale by making the store more appealing

and improves profitability. (Muren, 2013).

Quality Control. A quality control is a set of procedure to ensure the

manufactured products or performed service adheres to set of quality or meets

the requirements of the customers. Operationally, quality control is used in the

research, one of the sub-variables in determining the level of inventory

management processing among merchandising companies. Quality control helps

in safeguard to the company’s reputation, increase reliability, and increase trust

within customers. (SimpleLearn, 2018).

Sales Performance. Sales performance is the efficiency with which your

sales staff operates over a given time period. One of the most popular ways to

monitor and control sales reps' work from the start and throughout their careers

is to implement sales performance management. Operationally, this term is used

to determine the level of inventory management processes in terms of sales

performance. Connecting with customers is very important in customer’s

satisfaction. This increase customer’s loyalty and more profit. (Zendesk, 2018).
 CHAPTER II

REVIEW ON LITERATURE AND RELATED STUDIES

This chapter consist the related literature and its factors. This also

consisted of related studies that are gathered from various textbooks, e-boosk,

articles, and news. These literature and studies will help in formulating the study

and helps in the clarifications of the problem.

Review and related literature

Quality Control

Quality control measures the company's willingness to examine evidence-based

data and research. This is additionally to guarantee the items are the

accompanying the guidelines. The company saves money in the long run

because quality control prevents products from being unreliable and unrelated to

demand. Another is that it uses a specific tool to finish a fact-finding process

when dealing with quality control; It is a kind of standard established by the

department of quality management (Simplilearn, 2022).

As a result, the study with the title "Quality control: What it is, the way

things are work, by (Adam Hayes, Khadija Khartit, Suzanne Khilhaug, 2022),

states there that. The purpose of quality control is to guarantee that the product

is in good condition, improved, or maintained. For quality control, a company

needs to have a working environment where employees and management strive

for perfection. Employees should receive training in addition to performing their

duties.

According to Smriti Chand (2016), quality control is important for three

reasons. First, it makes people more aware of quality, makes customers happy,

and lowers production costs. The introduction of quality control encourages and

raises workers' awareness of the importance of quality, which is crucial to

achieving the desired level of quality control. Having effective quality control also

benefits customers, who are more satisfied with the product or service as it

improves. By attempted compelling assessment and command over creation

cycles and tasks, it thought about that the creation cost is diminished. In general,

quality control ensures that products are produced without waste and reduces

production costs.

Quality is crucial for any product or service. Due to fierce competition in

the market, quality has developed into a crucial point of differentiation for nearly

all goods and services. Quality control is essential to the success of any

business that produces goods that meet or exceed customer expectations.

Additionally, it is the foundation of a productive, waste-free, and output-

maximizing business. A quality control system that is based on a well-known

standard, like ISO 9001, which was published by the International Organization

for Standardization, provides a solid foundation for achieving a variety of

marketing and operational benefits (Shriganesh Shukla, 2016).

 Offering high-quality goods and services must be the primary focus of all

businesses. Producing consistently high-quality goods is a great way to keep

customers satisfied and loyal, regardless of the size of your business.

Consequently, there are fewer risks for customers and fewer costs associated

with repairing or replacing defective goods. Quality is one of the factors that

contribute to a company's reputation. Customers who are satisfied with a

company are more likely to recommend its high-quality products to others.

Thanks to the internet, users can now share their experiences on social media or

review websites. According to Xinbo Zhang (2018), a company's marketing

efforts can significantly benefit from favorable feedback from satisfied customers

who value the products and services.

Sales performance

critical to sales performance in a market that is becoming more

sophisticated, more relationship-focused, and more demanding of personalized

solutions. The ability of salespeople to mobilize intra-organizational resources,

salesperson creativity, an examination of the buyer—seller interaction in terms of

salesperson influence tactics behaviors and the significance of establishing

credibility with buyers as a basis of influence, ethics relative to the buying and

selling organization simultaneously, and selling teams are the five topic areas

covered. Each topic area's research ramifications are developed (Kenneth R.

Evans, Richard G. McFarland, Bart Dietz and Fernando Jaramillo, 2018).

 Managers and academics in the field of sales and marketing must both

understand the elements that affect sales success and how these factors change

depending on the circumstances. Numerous research has looked for the

variables that have the biggest impact on salespeople's performance. Depending

on the product type and the environment where sales are conducted, the

significance of these characteristics may change. This study aims to evaluate a

model that combines various elements that affect salespeople's success (Paulo

Donassolo, 2016).

Also, according to Jessica Wahlberg-Järvenkylä, (2017). States there that,

it was determined at this point to concentrate on how sales representative’s view

and experience sales performance, both personally and generally, as well as

their perceptions of and experiences with reference to 8 sales performance

measuring instruments. The goal is to be able to pinpoint the variables that affect

sales performance as well as the characteristics and metrics that salespeople

believe are essential for success in the field. In making this choice, it was

decided to contrast well-established theories about sales performance

assessment and determine whether the outcomes could be seen in the day-to-

day activities of salespeople.

You can ensure you're providing an excellent customer experience by

concentrating on your sales performance. Agents must establish strong rapport

with customers in order to increase sales. You can also meet or exceed the

revenue targets set for your business by tracking your sales performance. Simple

math tells us that the more sales your reps close, the more money your business
makes. It takes more than just maximizing your revenues to succeed well in

sales. Tracking performance metrics is a terrific method to gauge how well your

sales team is doing, and it's also a crucial component of personal and

professional development for you and your salespeople. You can use information

like each rep's appointment-setting rate or conversion rate to help your team

members reach their particular goals. These particular "micro goals" provide your

agents with something to strive for and act as a measurable barometer of

success (Molly Murphy, 2020).

In their analysis of a direct-selling company's sales force, the authors fill a

critical knowledge gap about how sales performance and work happiness are

determined. The findings show that work-related effort directly improves job

satisfaction and is not mediated by sales achievement. This contradicts widely

accepted theoretical models and shows that models of work behavior have

underemphasized the idea of labor as a "final value" i.e., an end in itself rather

than merely a means to an end. (Steven P. Brown, 2016).

Demand planning

According to the Michigan state university, (2018), states that. Demand

Planning, often known as prediction, is a procedure used in supply chain

management to make sure that products can be delivered and please customers.

Striking a balance between having enough inventories to meet consumer

demand without having an excess is the objective. Demand can be influenced by

a wide range of variables, such as shifts in the labor force, economic changes,

bad weather, natural disasters, or world crisis situations.

Demand planning often kicks off the planning side of SCM. This entails

developing a demand plan based on a statistical forecast that takes into account

variables that can affect need, such as inventory and marketing, and defines

where to distribute products to satisfy the anticipated demand. The supply chain

planning process's subsequent steps, material needs planning (MRP) and

production planning, are influenced by the demand plan. The product moves into

the SCM execution stages, such as warehouse and transportation management,

once it has been manufactured (David Essex, 2016).

Maintaining the ideal balance between just enough inventory and a

surplus is crucial for businesses. To find this equilibrium, they can employ

demand planning to examine historical data and product trends. You may find it

useful to learn about this procedure if you work in marketing or sales. This article

explores five forecasting techniques and discusses demand planning, including

who uses it, why it's crucial, and how it varies from demand forecasting. Demand

management is to establish and maintain a lean supply equilibrium in which shop

inventories are limited to the number of items necessary to meet demand. It can

be particularly challenging to strike the ideal balance between surplus and

sufficiency. And although keeping that equilibrium is a top priority for demand

planning, so is the ongoing endeavor to influence demand through smart use of

promotions. (Lekum, 2016).

 Demand plans must adapt to the market's shifting dynamics as it might

change in an instant. Companies risk experiencing stock-outs, disgruntled

consumers, and warehouses full of idle inventory, disgruntled finance managers,

and millions of dollars in wasted capital if demand plans can't be altered swiftly.

In a perfect world, demand planners would be proactive rather than reactive, and

they would base their decisions on near-real-time market data rather than just

historical data. Although it's not always possible, the emergence of cloud-based

planning platforms has brought this possibility closer than ever. (Anaplan, 2018).

There is no business if there is no demand. Additionally, firms are unable

to decide how much money to spend on marketing, how much to produce, how

many employees to hire, and other matters without a solid understanding of

demand. Despite the fact that demand forecasting can never be completely

precise, there are things you can do to shorten the lead time for manufacturing,

boost operational effectiveness, save money, introduce new goods, and enhance

the customer experience. (Keepler, 2022).

Review and related studies

According to the study of Muhammad Junaid, (2015). Inventory

Management and its effect to customer’s satisfaction; states there that. It looks at

inventory control and how it might raise customer satisfaction. It examines the

pressure placed on food firms to simplify their inventory management processes

and the results of such measures. Additionally, it looks at how many retailers are

attempting to establish a "perfect order" system and how suppliers are under
constant pressure to satisfy these merchants' demands. As a result, many food

companies are investigating different inventory management systems because

they think doing so will increase customer satisfaction. The paper also describes

the research methodology and concludes by highlighting the research's

shortcomings and making recommendations for additional research.

Another according to; the impact of inventory management practice on

firms’ competitiveness and organizational performance: Empirical evidence from

micro and small enterprises in Ethiopia by (Daniel Atnafu, 2018). The objective of

this study was to experimentally investigate how inventory management

practices affect organizational performance and company competitiveness. 188

micro and small businesses (MSEs) in the manufacturing sub-sector provided

data for the study, and structural equation modeling was used to examine the

links and hypotheses stated in the conceptual framework (SEM). According to

the findings, better organizational performance and a stronger competitive

advantage can arise from higher levels of inventory management practice.

Additionally, competitive advantage can directly and favorably affect how well an

organization performs. As a result, it is advised that policymakers, academic

institutions, nongovernmental organizations, and any other interested parties

working to support MSEs focus on supplying the necessary training and

resources to promote the inventory management practice of MSEs, which will

increase their competitiveness and organizational performance. That would

increase their contribution to the nation's economic growth. Because this study's

conclusions are solely from the perspectives of MSEs in the manufacturing

subsector, they may not be generalized to large and medium-sized businesses

or to all industries.

Customers are the most crucial element to satisfy, so a customer

satisfaction survey is conducted to see what they think about Grant Store.

Customer value and customer satisfaction theories explain how to establish a

positive rapport with clients and why it's so important to attract devoted

customers while also keeping the ones you already have. (Katriina Mattsson,

2016).

Another, according to Emmanuel Mitaire Tarurhor (2021), Inventory

management and customers’ satisfaction in the public health sector in Delta

State, Nigeria: marketing analysis. In government-owned hospitals in Delta State,

Nigeria, this study examines how inventory management affects customer

satisfaction using lead time as a moderator variable. It intends to add to the body

of knowledge on customer satisfaction and inventory management in developing

nations, with a particular emphasis on Nigeria's Delta State. One hundred and

five (100) questionnaires measuring inventory management factors were

provided to medical practitioners, nurses, pharmacists, and medical laboratory

scientists, totaling two hundred and sixty-five (265) in total. Similar to this,

patients received one hundred sixty surveys meant to gauge their level of

customer satisfaction. Multiple regression and structural equation modeling are

used in the study to analyze the data. Additionally, several marketing analysis

techniques were employed to investigate the effect of inventory management on

customer satisfaction.
 Lastly, according to Jayanthi Ranjan & Sandeep Puri, (2016). Out of Stock

conditions affecting Customer satisfaction and customer loyalty, states there that,

Customer experience, contentment, and service will eventually become the

limiting differentiators in the retail sector. Retailers are under pressure to

increase inventory turnover and customer service as a result of increased

competition. Ineffective logistical planning may lead to either overstocking (which

can cause cash flow issues and excessive discounts) or lost sales as a result of

stock outs. Stock outs can have a significant negative effect on the company

because they lower consumer happiness and the reputation of the store. Before

implementing any retail inventory model, it is crucial to comprehend the price of a

stock out.
 CHAPTER III

RESEARCH METHODOLOGY

This chapter presents the research methodology used by the researcher

in conducting the study. It shows the research design, research locale,

respondents of the study, research instrument, data gathering procedure,

sampling technique, and statistical treatment that the researcher utilized to come

up with a valid and reliable study.

Research Design

This study will use descriptive-correlational research since the goal of the

researcher is to determine the inventory management processes and customers

satisfaction among merchandising companies. The primary goal of a descriptive

correlational study is to describe connections between variables without

attempting to establish a causal relationship.

According to Ivy, (2022). The term descriptive-correlational study refers to

data that has been examined to highlight the key characteristics of data gathered

or used in a study (Fowler, 2013). They offer summaries and other crucial details

about study samples and metrics to researchers. Measures of central tendency

and the measure of spread are the two main types. The emergence of specific

patterns that make it simple for researchers to comprehend and make sense of

data is a frequent occurrence when using descriptive data.

Research Locale

This study will be conducted at General Santos City. Since General

Santos City is known for the canter of businesses, especially the number of

merchandising companies builds here. This area is literately picked since it is

convenient for the researcher to choose three merchandising companies for its

respondents.

Figure 2. Map of General Santos City

Respondents of the study

The respondents of the study will be the customers of three chosen

merchandising companies in General Santos City. Since the researcher is to

determine the customers satisfaction, it is important to know the feedbacks of

customers which have experiences to the products and services of these three

merchandising companies.

Research Instrument

The researcher will use self-made-questionnaire and modified for the

indicators of the problem in the study. This is utilized by the researcher itself and

will be conducted with the guidance of the theories.

The survey questionnaire will be consisting of two parts. Below are the

parts;

Part I. This part of the questionnaire consisting of questions that talk about the

factors that affect customers satisfaction towards inventory management

processes.

Part II. This part talks about the inventory management processes and

customers satisfaction among merchandising companies here in General Santos

City.

Data gathering procedure

The researcher will be following the steps below in gathering data.

 1. The researcher will formulate made questionnaires of the study;

2. Ask permission to experts to evaluate the questionnaire and for

validations;

3. Ask permission to school authorities to conduct the study outside the

premises;

4. Provide the approved letter to the said respondent and conduct the

questionnaire;

5. Gather data;

6. Interpret and analyze the result; and

7. Draw conclusion.

Sampling Technique

The researcher will use random sampling in choosing the respondents of

the study. Random sampling is a part of the sampling technique in which each

sample has an equal probability of being chosen. A sample chosen randomly is

meant to be an unbiased representation of the total population. Random

sampling ensures that results obtained from your sample should approximate

what would have been obtained if the entire population had been measured

(Shadish et al., 2002).

To determine the sample size of the respondents, the researcher will use

the Crochan Method following the formula.

n0 = sample size

p = estimated proportion of the population

q = 1 minus the p

e = margin of error

Statistical Treatment

The study will utilize weighted mean, Pearson correlation

coefficient, and multiple regression analysis in determining the imports restriction

and food safety product and security.

The weighted mean, which is a sort of mean, is first computed by

multiplying the weight attached to a certain event or outcome by the quantitative

outcome that is attached to it, then adding all the results together. It involves

combining the means of two or more groups of varying sizes and accounting for

the group sizes when calculating the overall mean. As a result, the calculation is

as follows:
 Where: W𝑋̅= the weighted mean; x= observed values; w= allocated

weighted value.

Second, multiple regression analysis. It is used for prediction and forecasting, as

well as to infer causal relationships between the independent and dependent

variables. To use regressions for prediction or to infer causal relationships,

justification on why existing relationships have predicted power for a new context

or why a relationship between two variables has a causal interpretation (Cook &

Weisberg, 1982). However, it is primarily used when the researcher wants to

predict the value of a variable based on the value of two or more variables. It can

be calculated as follows:

𝑌𝑖 = 𝑓(𝑋𝑖, 𝛽) + 𝑒𝑖

Where: Yi= dependent variable; f= function; X i= independent variable; 𝛽=

unknown parameters; ei= error terms.

Third, Pearson correlation coefficient, also known as Pearson’s r, is a

measure of linear correlation between two sets of data. It is used to determine

the relationship, instead of difference, that is between two quantitative variables,

interval or ratio, and the degree to which the two variables coincide with one

another; that is, the extent to which two variables are linearly related. This is

simply explained through changes in one variable correspond to changes in

another variable. It can be calculated as follows:

∑(𝑥𝑖 − 𝑥̅)(𝑦𝑖 − 𝑦̅)

𝑟=

√∑(𝑥𝑖 − 𝑥̅)2( 𝑦𝑖 − 𝑦̅)

Where: r= correlation coefficient; x i= values of x-variable in a sample; 𝑥̅= mean

of the values in x-variable; yi= values of y-variable in a sample; 𝑦̅= mean of the

values in y-variable.

Table 1. Inventory management processes rating scale.

Scale Response Anchor Interpretation

5 Strongly Agree Highly Implemented

4 Agree Implemented

3 Moderately Agree Moderately Implemented

2 Disagree Not Implemented

1 Strongly Disagree Highly Not Implemented

Below is the scale presented to measure the inventory management

processes. Thus, scale boundaries and its corresponding response anchor are

interpreted below:

4.20 – 5.00 Strongly Agree, represents the responds of respondents as

being extremely implemented to the inventory management processes.

3.40 – 4.19 Agree, represents the responds of respondents as being

highly implemented to the inventory management processes.

2.60 – 3.39 Moderately Agree, represents the responds of respondents

as being moderately implemented to the inventory management processes.

 1.80 – 2.59 Disagree, represents the responds of respondents as being

slightly implemented to the inventory management processes.

1.00 – 1.79 Strongly Disagree, represents the responds of respondents

as being not implemented to the inventory management processes.

Table 2. Customers satisfaction rating scale

Scale Response Anchor Interpretation

5 Strongly Agree Highly satisfied

4 Agree Satisfied

3 Moderately Agree Moderately satisfied

2 Disagree Not satisfied

1 Strongly Disagree Highly Not satisfied

Below is the scale presented to measure the customer’s satisfaction.

Thus, scale boundaries and its corresponding response anchor are interpreted

below:

4.20 – 5.00 Strongly Agree, represents the responds of the respondents

as being extremely satisfied to the inventory management processes.

3.40 – 4.19 Agree, represents the responds of the respondents as being

highly satisfied to the inventory management processes.

 2.60 – 3.39 Moderately Agree, represents the responds of the

respondents as being moderately satisfied to the inventory management

processes.

1.80 – 2.59 Disagree, represents the responds of the respondents as

being slightly satisfied to the inventory management processes.

1.00 – 1.79 Strongly Disagree, represents the responds of the

respondents as being not satisfied to the inventory management processes.

Table 3. Matrix for Statistical Treatment

Statement of the Problem Statistical Treatment Variables

1. What is the level of Weighted Mean Independent

Variables
inventory management

processes among

merchandising companies

in terms of:

1.1 Quality Control

1.2 Sales performance

1.3 Demand Planning

2. What is the extent of Weighted Mean Dependent

Variable
customers satisfaction

towards inventory
management processes

merchandising companies?

3. Is there a significant Pearson correlation Independent

coefficient Variables;
relationship between the
Dependent
inventory management
Variable
processes and the customers

satisfaction among

merchandising companies?

Multiple Regression Independent

Analysis Variables;
4. Among the factors, what is Dependent

the most influential to Variable

customers satisfaction?

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