Advisers

Leah A. Moreno

Discipline

Business administration

Abstract

Effective inventory management is vital for operational efficiency and customer satisfaction in small retail stores. This study examined SitioMart Everyday Store in Quezon City, focusing on struggles with overstocking and stockouts associated with unsystematic ordering. The research evaluates the Economic Order Quantity (EOQ) model to balance holding costs with product availability. By analyzing current practices, the study aims to propose a data-driven framework that minimizes waste and ensures service reliability for the local community. The study used a descriptive-correlational research design to assess SitioMart Everyday Store’s inventory practices and examine their relationship with customer satisfaction. Data were collected from 30 respondents, including the owner and staff from two branches, through purposive sampling. A validated structured questionnaire was used, and the data were analyzed using frequency, percentage, weighted mean, ranking, and correlation test. The findings show that the store has weaknesses in manual inventory recording, stock handling, and ordering procedures, particularly due to inconsistent record updates and inefficient tracking systems. Limited storage space, along with frequent stockouts and overstocking, was associated with reduced product availability. Although staff maintain good supplier relationships and focus on product quality, these operational issues were associated with lower customer satisfaction, trust, and loyalty. The study concludes that SitioMart’s manual inventory system was associated with stockouts, overstocking, disorganized storage, and lower customer satisfaction. While staff value product availability, the absence of a systematic tracking system prevents consistency. It recommends adopting a technology-based solution, specifically a spreadsheet-based EOQ system with standardized inventory training, to optimize stock levels, reduce costs, maintain product freshness, and improve overall customer experience.

Keywords

operational efficiency, customer satisfaction, inventory management, economic order quantity, small-scale retail