ANALYSIS OF INVENTORY MANAGEMENT SYSTEM OF SELECTED SMALL-SIZED RESTAURANTS IN QUEZON PROVINCE: BASIS FOR AN INVENTORY SYSTEM MANUAL

The study aimed to determine the effectiveness of the inventory management system of selected small-sized restaurants in the four districts of Quezon Province to provide suggestions and solutions to the problems they encounter in their day-to-day operations. This descriptive research used quantitative and qualitative approaches in gathering data. A survey was conducted among restaurant employees while an interview was done among restaurant owners. Weighted mean, frequency and percentage were utilized in the analysis and interpretation of quantitative data while coding was done to interpret qualitative data. Results revealed that most small-sized restaurants in Quezon Province use the FIFO or First In First Out method in inventory management. Others practice the JIT or just-in-time theory. Meanwhile, their problems on inventory management including the chef dictating what to buy resulting to overstock of inventory; large volume of purchases, food pricing, food and beverage inventory levels not being counted (dining area), and vegetable spoilage. This could affect the cash flow or distort the financial position of the restaurant. The use of the FIFO method should be sustained especially for the perishables such as poultry, meat, fish, and vegetables. Restaurant owners may also consider other strategies like FEFO or first expiry first out method.