Planning Report: Maximizing the Profitability of Coconut Wood Utilization Based on its Marketable Demand
The group were able to collect data from two other small scale coconut wood businesses around Davao City. But we were not able to find accurate data for inventories for they don’t have a systematic way of monitoring the sales for any particular day for the reason that most of the time, only the helpers are left on the store and their only duty is to check the right amount of payment and to carry the woods in case on door-to-door order.
When asked on how do they cope with the demands, they answered that they rely more on the availability of the woods on their stores and if they run out of it, they have to wait a week or two for additional order. The nature of their order depends on the distributors. One of the small-scale businesses of coconut wood in Buhangin take this as a major problem for they rely on the coconut woods transported from the distributors coming from Davao Oriental and they have to pay additional rate for the transportation.
One of the major problem that these establishments often encountered is the fact that they often produce the same numbers of coconut wood in different cuts and find that there are some that is not in demand and often they have too much excess or reserve of such woods that could result into poor distribution of demand and supply. This could also result into lesser profit on the side of the manufacturers.
The problems of these manufacturers relates to the problem that we are trying to solve and we have been able to set one of the major objectives of our research that is to properly utilize the allocation of the resources(coconut woods) to maximize the profit that the manufacturer can get.