Chapter 3

Research Design and Methodology

Research Design

The study use the descriptive type of research method in observing and obtaining
information to the existing companies who used the just in time model in order to acquire
accurate data. This study focuses on describing Inventory cost and production quality
through the use of Just in time model.

Research Environments

This study is conducted in Cagayan de Oro City, Misamis Oriental down to Iligan City,
Lanao del Norte.

Cagayan de Oro City is known as the "City of Golden Friendship". It's the provincial
capital of the province of Misamis Oriental and the "Gateway of Northern Mindanao" lying
along the Northern coastline. It serves as the regional hub being the most populous,
highly-urbanized city in Northern Mindanao (Region X).

It also serves as the regional center and business hub of Northern

Mindanao (Region X), and part of the growing Metropolitan Cagayan de Oro area, which
includes the city of El Salvador, the towns of Opol, Alubijid, Laguindingan, Gitagum at the
western side, and the towns of Tagoloan, Villanueva, Jasaan, Claveria at the eastern
side. The City of Cagayan de Oro is located along the north central coast
of Mindanao island facing Macajalar Bay and is bordered by the municipalities of Opol to
the west, Tagoloan to the east, and the provinces of Bukidnon and Lanao del Norte to the
south of the city. According to the 2015 census, the city has a population of 675,950,
making it the 10th most populous city in the Philippines.

Iligan City is known to be the City of Iligan Majestic Waterfalls, Iligan City has 23
waterfalls surrounding it. The most famous is the Maria Cristina Falls which is the main
source for hydroelectric power in the whole Mindanao region. Other famous falls good for
vacationers are the Tinago Falls, accessible through a 300-step staircase; Mimbalut Falls;
Abaga Falls; Dodiongan FAlls; and Timoga Springs. Total population of the city as of 2010
is 322,821. The land area of the city is 813.37 km2 (314.04 sq mi) which is bounded on
the north by three municipalities of Lugait, Manticao and Opol; on the south by another 3
municipalities of Baloi, Linamon and Tagoloa and another two municipalities of Kapai and
Tagoloan II; on the northeast by Cagayan de Oro City; to the east by the municipality of
Talakag, Bukidnon; and to the west by Iligan Bay.

Iligan City is considered as the Industrial Center of the South as it produces

hydroelectric power using the Maria Cristina Falls for the whole Mindanao region through
the National Power Corporation (NAPOCOR). It also houses industries like steel, tinplate,
cement and flour mills. The National Steel Corporation, one of the largest steel
manufacturers in the Southeast Asian region, now Global Steelworks International
Incorporated was re-opened in 2003.

Figure3. Map of Research Locale

Research Subject

The respondents of the study are those company who take orders before delivering
the products to the customers (et., al Cement Manufacturing and Restaurant Businesses).