Step 14: Inventory, Bar Management & POS System Flashcards
What is inventory?
Everything in the establishment (i.e. produce, pots, liquor, linen)
Why is inventory important?
To determine food costs & to calculate cost percentages. Almost always time consuming
Simplest method of tracking inventory
Using a spreadsheet
The most important document for good received/ordered
The invoice
What does an invoice show?
Itemized list of goods showing:
- Quantity
- Quality
- Price per kg or unit
- Extension of cost chargeable (sometimes)
What’s a requisition form?
Form used for record keeping products moved from storage to kitchen (for large operations)
Perpetual inventory management
- Perpetual
- Periodic (physical inventory)
Do small operations use perpetual inventory management?
Mostly only on expensive items (record keeping is timely & costly)
Perpetual inventory management
Running balance of what is on-hand (in - out = balance)
Physical inventory management
Periodically counting all items in storage (should be done at least monthly). Can be used to verify perpetual inventory records
Most common method of determining actual cost of each item
last price paid x quantity = inv. value
2 methods of determining value of stock
- Last price paid
- FIFO
What is the inventory turnover rate?
of times in a period (usually a month) that inventory is turned into revenue
(i.e. 1.5 times/month, 18 times/year)
What’s the typical inv. turnover rate?
2-3x/month (every 1-2 weeks)
Average food inv. equation
Avg. food inv. = (beg. inv. + end. inv.)/2
