Chapter 1.

Introduction

1.1. Rationale

Improper inventory or unrecorded stocks can be the cause of stock out or overstock in the inventory.
This leads to the counting of the inventory to be inefficient. Providing demand forecasting to the Nang
Linda’s Restaurant to help optimize their inventory management.

Reducing the time from checking the new upcoming inventory stocks considering in 3 years Nang Linda’s
Restaurant sales would be increasing. Improvement for Nang Linda’s Restaurant specifically on their
inventory operation process management.

We would be applying ratio and proportion if in case their demand would rise up then their inventory
stock would be rising up as well, they need it to cover up the possible spike or increase for their usage.
We don’t want to our restaurant that the customer can’t have of what they want.

Opportunity for the company for to improve considering that their demand will still be increasing.
Demand rises up as well as when the time checking on the inventory. Ratio and proportion to compare
the amount of time on spending checking their inventory.

1.2. Significance of the Study

Mitigating on inefficiency of Nang Linda’s inventory counting. Demand forecasting can help to promote
on optimizing restaurant’s inventory management, reducing stock out or overstock. Considering that 3
years from now Nang Linda’s Restaurant sales will double, demand of stocks would rise and amount of
time in checking on inventory stocks would also increase. Whenever, this trend would continue time
would come wherein probably having ang overtime of the company would occur which in this case it
would be preventable because we could see we could see that there is a process or part in their
operation that needs improvement. Nang Linda’s Restaurant could prevent this phenomenon on the
future.