CHAPTER 3

RESEARCH METHODOLOGY AND PROCEDURE

This chapter represents the methods and procedure of the research activities. It

deals with the description of research design, respondents of the study, data gathering

instrumentation and data gathering procedure and statistical treatment of data.

Research Design

The researcher used the descriptive methods of research in order to analyze and
assess the inventory control system of 1st District of Batangas and it used to attain the
purpose of the study. The descriptive method of research provides adequate and
accurate interpretation of finding.

As defined by Calmorin (2010), the descriptive type of research design is used in

the study involving present condition. Its purpose is to find the truth. Studies using the
descriptive design are valuable in providing facts. They provide essential knowledge
about the future of objects and persons.

Respondents of the Study

Respondents of the study were the Rice Retailers in 1st District of Batangas. The

questionnaires were answered either by the owner of the store who is associated with

the inventory control or an employee assigned in warehouse department. The persons

allowed to answer the questionnaire were those responsible in inventory control system

in terms of safety stock, reorder point, economic order quantity, and ABC analysis. A

sample size of ____ was determined using the Raosoft from the population of ___ Rice

Retailers in 1st District of Batangas.

Sampling Design

The researchers used random sampling in determining the samples of the study. Simple

random sampling is the basic sampling technique where they selected a group of subjects (a

sample) for study from a larger group (a population). The specific method used in the study to

determine the samples were the slovin's formula. Each individual is chosen entirely by chance

and each member of the population has an equal chance of being included in the sample. Every

possible sample of a given size has the same chance of selection (Easton and McColl's

Statistics Glossary vl.1). With simple random sampling, the researchers more likely to get the

answer of the target population which was 89 that was more readily accessible.

Data Gathering Instrument

In order to generate the designed data for analysis, the researchers constructed a

questionnaire which was the main instrument used in the study. The draft of the questionnaire

was drawn based on researcher’s readings, previous studies, professional literature, published

and unpublished thesis relevant to the study and other online publication. The questionnaire

consisted of two parts. The first part showed the data of the respondents with regard to the

business profile of the firm which includes the form of business organization, number of years in

operation and capitalization. The second part pertained to the inventory control procedures that

involved the reorder point, safety stock, ABC analysis and economic order quantity provided in

the company. The questionnaire was validated by their adviser, the panel members, a faculty

and industry expert members and the dean of CABEIHM. The reliability was measured through

Cronbach’s Alpha. A dry-run was administered for --- respondents in a similar environment; 1st

District of Batangas is the location of the selected ---------

Statistical Treatment of Data

The data were gathered and treated statistically using various formulas. The statistical

treatments necessary to determine the response of the target respondent were:

Percentage. To determine the profile of the respondents in terms of form of business

organization, number of years of operation, capitalization and city.

Weighted Mean. It will be computed by multiplying each volume by corresponding

weight and dividing the sum of weights and its particularly useful when various classes or

groups contribute differently to the total (Sirug, 2011). This was used to determine the

assessment of respondents in terms receiving, storage, rotation, schedule and security.

Independent Samples t Test. Compares the means of two independent groups in order to

determine whether there is statistical evidence that the associated population means are significantly

different.

One-way analysis of variance. (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more independent (unrelated)
groups (although you tend to only see it used when there are a minimum of three, rather than
two groups).