Chapter 7 - Inventory control: How do i keep track of all this stuff? This chapter’s objectives are to: Set up an inventory control system, know how product specifications and standardized recipes contribute to inventory control systems, determine how much inventory an operation should keep on hand,. | Purchase Requisition Stock Requisition Specifications Standard Recipes Maximum Inventory to Keep on Hand Vendor Approval Order Record Kickbacks Steward Sales Receiving Procedures Storage Food Cost Analysis Employee Fraud Direct Control System Set up an inventory control system. Know how product specifications and standardized recipes contribute to inventory control systems. Determine how much inventory an operation should keep on hand. Explain the ethical and legal consequences of kickbacks and detect their presence. Manage steward sales. Navigate the vendor approval process. Describe the receiving and storage process. Perform food cost analyses. Understand the difference between the standard cost of food sold and the actual cost of food sold. Conduct a physical inventory. Use inventory control procedures to keep theft, waste, and pilferage at acceptable levels. Normally found in large hotel food and beverage operations Precedes the purchase order Clarifies the need for the item and . | Purchase Requisition Stock Requisition Specifications Standard Recipes Maximum Inventory to Keep on Hand Vendor Approval Order Record Kickbacks Steward Sales Receiving Procedures Storage Food Cost Analysis Employee Fraud Direct Control System Set up an inventory control system. Know how product specifications and standardized recipes contribute to inventory control systems. Determine how much inventory an operation should keep on hand. Explain the ethical and legal consequences of kickbacks and detect their presence. Manage steward sales. Navigate the vendor approval process. Describe the receiving and storage process. Perform food cost analyses. Understand the difference between the standard cost of food sold and the actual cost of food sold. Conduct a physical inventory. Use inventory control procedures to keep theft, waste, and pilferage at acceptable levels. Normally found in large hotel food and beverage operations Precedes the purchase order Clarifies the need for the item and includes specifications Good for tracking things outside normal inventory control system Used in cases of a storage facility managed by a separate department head Similar to purchase requisition Usually a computerized process Can provide up-to-date food and beverage cost information Control product quality and costs Consistency = Predictability = Better Forecasting Control product quality and costs Absolutely necessary Even one-time specials should have a standard recipe (with costs) “Don’t pick up the knife until you have a plan.” Three “Rules” to Choose From: Rule #1: Value of food inventory should not exceed a week’s food cost Rule #2: Total inventory should not exceed 1 percent of annual sales revenue Rule #3: Food inventory should not exceed 1/3 of the monthly food cost Example: Total Annual Revenue: $2,000,000 ($500,000 beverage alcohol; $1,500,000 food) Food Costs: 24% or $360,000 ($1,500,000 × .24) Rule #1 Food inventory should not exceed $5,923 (360,000 ÷ 52 = $5,923) Example:
