Effectiveness of Corporate Governance

on Inventory Management

Research Objectives

The main purpose of this study is to find out the Effectiveness of Corporate

Governance on the Inventory Management. Specifically, this study aims to achieve the

following objectives:

1. Know the demographic profile of the respondents in terms of

A. Number of employees D. Inventory tracking system

B. Years existence of the company E. Inventory turnover

C. Type of industry

2. Know the level of effectiveness of Corporate Governance on Inventory

Management in :

A. Transparancy

B. Accountability

C. Security

3. Know the extent of Corporate Governance on Inventory Management

4. Know if there is significant relationship between Corporate Governance and

Inventory Management.
Section A : Respondent and Business Profile ( Please put your answers in the space
provided and mark “ X ” in the appropriate box )

1. Name of the business ( Optional )

2. What is your position in the business?

[ ] Picker / Filer [ ] Inventory Clerk [ ] Maintenance Clerk [ ] Repacker

Others ( Please Specify ) :

3. Which industry does the business operate in?

[ ] Pharmaceutical

[ ] Retail and Wholesale

[ ] Manufacturing

[ ] Construction Industry

4. How long has the business been in operation?

[ ] 1- 5 years [ ] 11 years - 20 years

[ ] 6 - 10 years [ ] More than 20 years

5. What is the number of employees in the business?

[ ] Below 100

[ ] 101 - 200

[ ] 201 - 500

[ ] Above 500

6. What type of inventory tracking system does your retail business currently use?
[ ] Manual (e.g., spreadsheets, pen and paper)
[ ] Barcode Scanning
[ ] RFID (Radio-Frequency Identification)
[ ] POS (Point of Sale) System
Other (please specify):
7. How often do you assess and calculate inventory turnover?
[ ] Everyday
[ ] Weekly
[ ] Monthly
[ ] Quartelry
[ ] Annualy

Section B : Inventory Management

Direction: Answer the following statements honestly, check 5 for strongly agree, 4-
moderately agree, 3-neither agree nor dis-agree, 2-moderately disagree, 1-strongly disagree.

Orders Inventory 5 4 3 2 1

1. We order a fixed quantity of inventory ( stock )

periodically

2. We use an equation / inventory metrics to calculate

inventory or stock order

3. We order only when we run out of stock

4. When we place order we receive our inventory or

stock without delay

5. The business has its own warehouse

Transparency 5 4 3 2 1

1. Our warehouse staff verify delivery, receipt, and

storage of stock

2. Our warehouse staff have access to our accounting

records.

3. We update the inventory ( stocks ) regularly

4. We track the movement of inventory from the time
an order is placed to the time the stock is received

5. We use cycle counting when managing inventory

Accountability 5 4 3 2 1
Security 5 4 3 2 1
1. We have clear procedures followed by staff when
1. Access to our warehouse is restricted to authorized
receiving and issuing stocks
staff only
2. We are collaborating with our peers and accepting
2. Movements of inventory are monitored to ensure
the division of labors.
that it is properly safeguarded
3. We are responsible when something goes wrong in
3. We perform appropriate procedures for scraping
our inventory
obsolete inventory
4. Anomaly in inventory delivered is reported to
4. There are controls to limit the access to warehouse
senior personnel immediately
( e.g cameras, security gurads, restricted areas access)
5. Causes of discrepancies in inventory are tracked
5. Inventory performance metrics are monitored on a
and evaluated immediately
regular basis, e.g., inventory turns

Section C : Challenges faced in inventory management to know the extent of Corporate

Governance ( Please check the box )

Please use the following scale 5 = ALMOST ALWAYS , 4 = OFTEN , 3 =

SOMETIMES , 2 = RARELY , 1 = NEVER

5 4 3 2 1

Lack of real - time inventory visibility

Loss of sales resulting from shortage of inventory

Theft or missing of stocks

Piling up of inventory that is not moving /
Overstocking

Inability of suppliers to meet the orders made.

Increasing number of damaged inventory (stock)

Increasing number of stocks with a passed expiry date

Misplaced items in store that cannot be traced

Errors due to incompetent staff

Lack of integration with sales channels

“ Thank you for your participation.

Your answers are very valuable to us! ’’