Chapter 1

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The Problem and its Settings


Jollibee has many branches here in the Philippines. Many people who eat in Jollibee so many people are interested with the inventory of the products. When people see how they do their services, the people are amazed of how fast they work, how fast they cook and how fast they serve, but do people see how’s the inventory of the products? The Researchers decided to study about “The Effectiveness of Inventory Control Management of Selected Franchise Branches of Jollibee Foods Corporation in Manila,” to know the disadvantages and advantages of it in every branch. Inventory Control manages how much to invest in the inventory. It means that the management of every branch of Jollibee should be aware of the invested in the inventory of the products. The management should balance their investment so that they should maintain the good inventory of the establishment. If they don’t manage properly the inventory control of the products, there will be a shortage in their products that they will serve in the customers and their invested money for the products will lost. The students, store managers and other person who’s interested in having an establishment someday should study this topic to know how to handle and how to invest properly so that they will not experience shortage or wrong inventory of their products.

Inventory Control Management has techniques and those are; Economic Purchase Order, Quantities, Reorder level and Minimum inventory or safety stock. In Economic Purchase (how much to order), in order to control inventory, a decision model has been developed to determine the optimum quantity of material to be purchased on each purchase order. The model determines the optimum working stock level to be maintained. Each time a purchase order is placed, the company incurs certain costs. In order to minimize the costs of placing purchase orders, the company could increase the order quantity to meet the company’s entire needs for the year at one time, incurring only the cost of one purchase order. However, such a practice will lead to having a large average inventory of working stock, resulting in increase carrying costs. In reorder level, “lead time” is the time interval between placing an order and receive delivery.

In Minimum Inventory or Safety stock, in our previous paragraph, we had assumed with certainty that 18 units would be used per week. In practice, we seldom come across such a situation and demand cannot be forecast accurately. Actually the demand may fluctuate from period to period. If, therefore the usage per week at anytime goes beyond 18 units per week, the company will be out of stock for some time. Hence arise the need for providing for some safety stock. The recorder point is inter-related with the safety stocks because as the recorder point is moved upwards, the amount of the cushion is increased. Thus the recorder point is the resultant of the demand during lead-time plus safety locks. By increase the safety allowance the recorder point is increase by the same amount. It should be noted that the economic order quantity does not come into the picture and is independent of safety stock analysis.

Statement of the Problem

This study was conducted to assess the effectiveness of Inventory control management practices implemented by the franchise branches of Jollibee foods Corporation in Metro Manila.

Specifically, the study seeks to answer the following:

1. What was the demographic profile of the respondents according to: 2.1 Age
2.2 Civil Status
2.3 Gender
2.4 Years of Service in the Company
2.5 Monthly Salary

2. What inventory control management practices did the franchise branches of Jollibee Foods Corporation implement?

3. How effective are the inventory control management practices implemented by the store management?

4. What were the problems encountered by the store managers...
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