Chapter 7: Receiving, Storage, and Inventory
What should a well designed receiving program include?
Coordination with other departments Training for receiving personnel Parameters of authority and supervision Scheduled receiving hours Security measures Documentation
What is the cost of food sold equation?
(Beginning inventory + total food purchases) - ending inventory = cost of food sold
What is perpetual Inventory?
- A running record of the balance on hand for each item of goods in a storeroom • Updated in real time • Issues are recorded and subtracted from the balance • Provides stock balance and cost at any point in time • Generally restricted to dry, refrigerated protein foods, frozen storage • Not produce, milk, bread, fruits and vegetables
What is physical inventory?
- Physical Inventory • An actual count of items in all storage areas • Can be done daily, weekly, monthly - depends on the organization • Conducted by 2 people , one counts, one records • Consider "disinterested" party
What is the difference between theft and pilferage?
- Theft = premeditated burglary of expensive food products and equipment - Pilferage = focus is on the employee who steals a few items to take home, or eats food items
What are the steps in the receiving process?
1. Inspection against the purchase order 2. Inspection against the invoice 3. Acceptance or rejection of orders or items 4. Completion of receiving records 5. Removal to storage
What are the 5 key steps to the receiving process?
1. Physically inspect the delivery and check against the purchase order (PO) 2. Inspect the delivery against the invoice (what the vendor supplies) 3. Accept an order/items only if all quantities and quality specs are met 4. Complete receiving records 5. Immediately transfer goods to appropriate storage units
What are the 4 basic functions of inventory records?
Accurate information of food and supplies in stock Determination of purchasing needs Data for food cost control Prevention of theft and pilferage
What should the receiving person be responsible for?
Check perishable items first Randomly open cases Check for quality and safety Visually check food items and take temperatures Check package for intact and clean packaging, no signs of pests or dampness, labeled correctly Correct color, texture and odor
How many times should the refrigerator and freezer be checked a day?
Minimum 2 times daily
What else does receiving include besides just acceptance and signing for delivery of products?
Verifying that quality, size, and quantity meets specifications, price on the invoice agrees with the purchase order, and perishable goods are tagged or marked with the date received
What is the requirement for dry storage areas?
dry, cool, and properly ventilated • Separate room for cleaning supplies Temperature and ventilation • The temperature should not be above 50-70°F, humidity 50-70% • Pipes should be well insulated (basement) • Windows should have curtains or be painted opaque - sunlight damage • Good ventilation • Can cross stack foods
What is the definition of receiving?
point at which a FSO takes legal possession of the product ordered
What are the common methods of receiving methods/procedures?
• Blind method- provide a PO with the quantities blank, clerk quantifies what was delivered and writes it down, blind document is compared to the original PO with quantities • Invoice receiving- check the delivered items against the original PO
What are the recommended temperatures for refrigerated and freezer storage?
• Recommended temperatures: Fresh fruits and vegetables: 40°F to 45°F Meat, poultry, dairy products, eggs: 32°F to 40°F All food frozen products: 0°F to -10°F
What are the consequences of a poorly planned receiving program include?
• Short weights • Failure to assure quality and quantity • Double billing, inflated prices • Mislabeled merchandise • Inappropriate substitutions • Spoiled or damaged merchandise • Use by or expiration dates - pilferage or theft