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Dining Facility Inventory Management

Dining Facility Inventory Management. Inventory Objective Value. Last Month’s Earnings: $60,000.00 Divide by Last Month’s Number of Operational Days: 30 Equals (Average Daily Earnings): $ 2,000.00

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Dining Facility Inventory Management

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  1. Dining Facility Inventory Management

  2. Inventory Objective Value • Last Month’s Earnings: $60,000.00 • Divide by Last Month’s Number of Operational Days: 30 • Equals (Average Daily Earnings): $ 2,000.00 • Times Target Days of Inventory X 6 • Inventory Objective $12,000.00

  3. Surplus Inventory Value • Last Month’s Ending Inventory: $20,000.00 • Minus Inventory Objective Value: $12,000.00 • Equals Surplus Inventory Value $ 8,000.00 • DSS Notes: • If the dining facility was not open the previous month, the inventory value (EOM inventory) will show as a surplus. • If the dining facility had less than 100 average lunch headcount for the previous month, the inventory objective is increased by 25%.

  4. Reducing Surplus Inventory • Do it over a period of months time. • Don’t start running out of food. • Must first establish good menu planning, ordering and inventory control procedures. • Key First Step: Establish a Cycle Menu • The Menu is the central management document around which the whole food service operation revolves. • A Cycle Menu is a menu for a certain number of days or weeks that is repeated after a set amount of time. • Accounting Period – 1 Month.

  5. Inventory Control • Date all food items with date received. • Check dates in ration storage areas on a routine basis to determine if they are being used within a 6-day period. • Food may no longer be on the Cycle Menu. • Food may have limited use on the Cycle Menu. • SPV ordering sizes too big. Be careful about reducing Prime Vendor Package sizes ($$$=Distribution Fees). • DFAC orders rations without checking: • BOH • Due-ins • Due-outs

  6. Inventory Control • Use automated (EXCEL) Disposition of Subsistence to track food items over a menu cycle or month’s time. • Start tracking next month. • Look at a previous accounting period. Use: • Monthly Inventories • SPV Receipts • Kitchen Requisitions • AFMIS Disposition of Subsistence (coded A,B,C) • Determine if your running balance is set at the right level. • Too high = surplus inventory • Too low = run outs

  7. Par Level Management • Targeted Stockage Objectives • Work well with routine/daily use items (predictable movers) • Can use to establish standing orders • Set Par Levels based on: • Cycle Menu • Expected Headcount • Usage History • Everybody must be comfortable with Par Levels. • Reduced Inventory = Less Inventory work.

  8. Ordering & Inventory Control • Ordering Rations: • BOH • Due-ins • Due-outs • Par Levels • Increased Headcount = increased stockage levels. • Conduct and track weekly inventories. • Field residuals • Large quantities • Slow or non moving items

  9. Dining Facility Inventory Management

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