CH.8 Receiving, Storing, and Issuing

Who uses FORMAL systems of control and how?

- Consists of a system for tacking issues - Have staff to purchase, receive, store, & issue products -Requests for products made with a storeroom a formal document that cab be used to teach issues and determine food costs for each outlet. -Used by LARGER FOOD SERVICE OPERATIONS

Who uses INFORMAL systems of control and how?

- Used by INDEPENDENT & SMALLER CHAINS -Checks sheed used by employees when items are removed from stock room (manual writing) - ONLY manager or trusted employees have access to storeroom

Different systems buyers can use to determine how much of a product to order?

1. ABC Analysis 2. Par Stock Method 3. Mini-Max Method (Safety Stock) 4. The Levinson Approach 5. Economic Order Quantity

What are the 3 Q's of receiving?

1. Quality 2. Quantity 3. Quote

The kitchen supervisor of a large hospital foodservice facility needs to order lettuce. On average, the hospital uses half a case of lettuce per day. Two-and-one-half cases are in inventory on the day the chef will place the order. The chef also knows that the lead-time is three days and that the par stock for lettuce is eight cases. How many cases should the chef order?

1/2 case a day Lead time 3 days (3x.5= 1 1/2 cases) Par stock= 8 cases (how many we want to have the min we can keep) 2 1/2 cases in inventory currently 2 1/2 cases we have currently - 1 1/2 cases we will use over the next three days until delivery gets here = 1 case left 7 cases need to be ordered to have 8 in stock when delivery is added

Of all the things needed to achieve the storage objectives, usually the most difficult one to maintain is?

Adequate space

Formal Issuing

Buyer purchases goods on behalf of all outlets and issues them at cost to each individual outlet

When mistakes occur in quality, weight or count of the delivered item what can be done?

CHEFS and CLERKS have the right to reject inferior products credit agreement in place credit memo should be issued make sure bookkeeper knows credit is expected for that invoice

When performing Quality Inspection, when is this done by and what factors are they looking for?

Chef MUST train receiving clerk Factors: freshness, color, size, consistency, taste

What are physical(period or actual) inventories?

Complete accounting of all the items in the storeroom for cooler

When products are issued immediately into production from the receiving dock without going though storage it is called?

Direct issues

Mini- max (Safety Stock Method)

Established Min & Max inventory levels Minimum- lowest amount that must be on shelf durning ordering period Safety stock- how much is needed during the ordering period Maximum- safety stock + ordering quantity (how much is used within an order period)

Inventory Valuation Systems

FIFO LIFO Weighted average Actual cost latest purchase price (method should be used consistently)

FIFO

First In, First Out. Rotation system that uses the oldest products first Value based on MOST RECENT purchase price

The Levinson Approach

Helps buyer determine the correct time to order and the correct size to order estimate # of guests projected sales calculating raw weight of ingredient

Ingredient Room

Helps to control water and promote safe food handling. Area between storeroom and production area where items are weighed, measured, and assembled for the days recipes ingredients then deliver to the kitchen for cooking

Economic Order Quantity

Important in large food service operations takes into consideration holding costs ordering costs

Food can be issued into production in two ways?

Informal issuing Formal Issuing

What things need to be considered when setting receiving dock hours?

Kitchen needs and when the receiving personnel is available exception might need to be made for delivers to be made before opening hours

Key Stop (Drop Stop)

Occurs without receiving clerk present. Deliverer has key or refrigerated truck is left outside for receiving clerk in the morning

Business serves 300 portions (customer demand) of salmon filet per week ingredient:Salmon Serving: 12oz yield % 70

PF= Portion factor 16oz/ ingredient weight for 1 serving PD= portion divider (PF x INGREDIENT YEILD %) Order Size: customer demand/ PD PF= 16/12 = 1.33 PD= 1.33 x 70% = 0.931 Order Size= 300/ 0.931 = 322.23lbs

A buyer needs to place an order for salad dressing to be delivered five days from now. The par stock for this item is eight cases. Two cases are in stock, and it is expected that one case will be used during the lead-time. How many cases should the buyer order?

Par stock= 8 cases Lead time= 5 days (1 case) Cases in inventory= 2 cases 2 - 1 = 1 7 cases need to be ordered

Par Stock Method

Partial stock of the MOST USED items are kept in kitchen to prompt reordering of frequently used products partial stock kept near the main kitchen for access by the kitchen staff Reduces the number of trips necessary to the main storeroom which also maintaining security.

Formal & Informal systems of control used methods for?

Quantifying amounts to purchase

Informal Issuing

Storeroom is open to kitchen and staff no ability to separate costs (if multiple retail outlets use the same storeroom) Lack of control over products usage

weighted average

Total quantity of like products purchased at different prices X average cost of purchase

purchase requisition

Used in FORMAL storeroom operation Chef communicates exact needs to buyer so he/she can seek budgetary approval to make purchase

When and for what are weight tags used?

Used to record weight of large cuts of meat or fish during QUANTITY inspection Helps track item when issued for perpetual inventory purposes helps track item for financial purposes

LIFO

Value based on item held the LONGEST in inventory Does not match physical use of the product Does not require newest items to be used first

Specification Inspection 2 methods

Verify delivered goods were ordered blind receiving Keystop

When inspecting for quantity products must...

be counted or weighed

In order to earn a profit food must____

be issued into production

How can money be lost in the storing process?

carrying excessive inventory improper handling of perishables product deterioration or inaccurate bookkeeping

Maintaining File Statements

clerk should file copt of vendors signed delivery statement IMMEDIATELY Attach orginal order form keep separate file for each vendor validate invoice totals again delivery statements for accuracy

How is inventory volume controlled for until it is issued?

consider shelf life - good food is a FINANCIAL LOSS is left to spoil - quantity, storage time, storage tem, and packaging influence shelf life

What are perpetual (virtual) inventories?

count of stock that is supposed to be on the shelves in the storeroom (schools) things accounted for when they are taken or put back on the shelves so physical inventory has to be taken less often

Credit memo

document completed and signed by the DRIVER and given to RECEIVING CLERK for the value of the rejected product The memo instructs the seller to deduct the value of rejected product from the invoice

What are product (storeroom requisitions)?

forms used to identify foods need by the chef Includes: names of person, date requests for delivery, product code, product name, quantity/ needed, issued, cost

ABC Analysis

high priority given to items of greatest cost or volume A items - high cost or high volume (steak) B- middle (veg) C- least $ spent (cans)

Under the par stock approach to ordering, if the buyer thought that there was going to be more business than normal, he or she should?

increase the order size by adding on a "safety stock"

Inspections of received products should include:

inspection for quantity quality and specification

most important thing to keep track of in order to ensure effective inventory control in a hospitality operation?

items that are CURRENTLY held in stock

The interval of days between the time an order is placed and the time it is delivered is referred to as the?

lead time

The correct order size is influenced by which two costs?

ordering cost & storage cost

Blind Receiving

receiving clerk counts and weighs out everything

What department verifies the order

receiving department

Operator can exercise the greatest control at the ________

receiving dock

where is the financial, physical, and legal responsibility for the products handed over to the buyer

receiving dock

Process of releasing products from the storeroom into production is controlled by

requisitions forms used to request products needed for daily immediate production

What should the storeroom inventory database contain?

stock item number storage location code product description and specifications approved brand names and suppliers inventory information and more

Before a cook can obtain foods from the storeroom, usually he or she must present to the storeroom manager an authorized

stock requisition

Actual Cost

sum of the individual prices paid for each item

Latest purchase price

uses latest price to value inventory frequently used due to ease (ex: box A: $1 box B: $3 box C 2.50....all cost 2.50 )