Chapter 7 | Production Control: Quantities

Question 1

Why control production quantities?

Answer 1

Controlling portion cost alone is not enough.

Problems with under and over production

Question 2

Problems of under production

Answer 2

Lost sales opportunities
Smaller portions
Lower quality
Unsatisfied customers

Question 3

Problems of over production

Answer 3

Lower food quality
Waste
More discounts to move items = higher food cost

Question 4

What are the 3 standard procedures to control production volume?

Answer 4

1. Maintain sales history
2. Forecast portion sales
3. Determine production quantities

Question 5

What is included in sales history?

Answer 5

Sales history is the systematic recording of all sales achieved during a pre-determined time period.

1. Record of sales revenue
2. Sales volume
3. Explanation of anomalies

Question 6

What are external factors affecting sales?

Answer 6

1. Weather
2. Holidays
3. Local events

Question 7

What are internal factors affecting sales?

Answer 7

1. House count
2. Facilities and Equipment
3. Promotions, marketing activities

Question 8

Popularity index equation

Answer 8

Portion sales ÷total portion sales in same category

Question 9

Why is forecasting sales important?

Answer 9

Predicts the number of guests and revenues in a given future time period
Necessary to plan the most effective and efficient ways to meet expected sales volume
Reduces waste, spoilage, and theft

Question 10

What is a production sheet?

Answer 10

Translates management’s portion sales forecasts into production targets

Question 11

What is the objective of a production sheet?

Answer 11

To reduce excessive costs by setting goals for production