EFFECTS OF INVENTORY MANAGEMENT PRACTICES ON THE FINANCIAL PERFORMANCE OF MANUFACTURING MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN GENERAL SANTOS CITY

Inventory management keeps stock costs under control, allowing you to run a profitable business. This study was therefore designed to establish the effects of inventory management practices on the financial performance of manufacturing micro, small, and medium enterprises in General Santos City. A sample of 127 enterprises was taken from the population using a multi-stage sampling procedure. The instruments used in conducting the study were questionnaires, and they contained 5-Point Likert Scale questions regarding what type of inventory management practices they used and if these had an effect on their financial performance. The collected data were analyzed using weighted mean, percentages, Pearson correlation, and the analyzed were presented in tables. The findings of the study revealed that most of the MS.MEs agreed that they used "Rule of Thumb" and "Just-in-Time Inventory" as inventory management practices. Regarding the effectiveness of the practices used in financial performance, the study revealed that the combined effect of inventory management practices, which are the ABO Inventory Model, EOQ Inventory, Just-in-Time Inventory, and Rule of Thumb Model, have a positive relationship between inventory management practices an‹ financial performance. The study recommended that to enhance financia performance, MSMEs should consider using different inventory management practices.