IMPACT OF INVENTORY MANAGEMENT PRACTICES ON THE FINANCIAL PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN BARANGAY FATIMA, GENERAL SANTOS CITY

This research was carried out to look into the impact of inventory management practices on the financial performance of micro and small enterprises in Barangay Fatima, General Santos City. 119 Micro and Small Enterprises (MSES) operating in the aforementioned barangay provided data for the research. To facilitate the study, the researcher used an experimental research design and the data is gathered through surveys and distribution of questionnaires. Random sampling was used to determine the number of participants based on the sample size shown on the calculated marginal error. The demographics were ascertained using the descriptive statistics as well as the inventory management practices used in efficient inventory handling in terms of ABC Analysis, Just-In Time, First-in, First-Out, and Demand forecasting. Inventory Turnover, Return on Investment and Inventory Accuracy are assessed if it affects the financial performance of the enterprises. The statistical tools mean and regression aid in the conduct of this study, yielding valid and reliable results. These instruments were used to determine if the inventory management techniques and the businesses' financial performance, which are both study variables, have a significant relationship. According to the study's findings, the majority of business owners in Barangay Fatima were sole proprietors. The determinant factors used as inventory management practices which are ABC Analysis, Just-in Time, First-in, First-out, and Demand Forecasting were significant in boosting the financial performance of the business. The presented inventory management practices do not affect the financial performance if Return on Investment and Inventory Accuracy is used. Furthermore, the study recommended that there is a need to develop an effective inventory management handling system.