Boot Camp 3
Inventory Management
Objectives
• Define inventory management and the role of menu planning in inventory
management
• Implement delivery policies and procedures
• Implement inventory control procedures
• Properly equip and organize storage area for inventory management
What is Inventory Management?
• Inventory
– A complete list of items such as property, goods in stock, or the contents of a
kitchen.
• Management
– Judicious use of means to accomplish an end.
Menu Planning
• Menu planning is the underpinning of inventory control
• The menu establishes what items are needed and how frequently they are
going to be used
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Use cycle menus
Plan the menu before procurement
Improve manager forecasting
Use POS and production records to look at participation trends
Delivery Policies and Procedures
• Vendor delivery requirements
– Purchase from approved vendors
• Products received following written policies and procedures
– Products received match delivery requirements and written specs
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Unacceptable merchandise
Authorized substitutions
Document delivery problems
Review and update as needed
Inventory Control Procedures
• PAR values
– Used to establish a weekly quantity of any item to have on hand
– Use the POS
Pizza Meal PAR Value Example
• Daily use
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272 slices of pizza – from POS
Two cases of crusts
Two #10 cans of sauce
34 pounds of cheese
• Weekly PAR for ordering
– Daily numbers multiplied by serving days per week
– 10 cases of crusts
– Two cases of sauce
• 10 #10 cans
– Nine cases of cheese
• 170 lbs. of cheese
• 20 lbs. per case
Inventory Control Procedures
• Automated and manual inventory systems
– Sequencing the storage areas
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Dry storage
Chemical storage
Refrigerator
Freezer
Kitchen
Serving lines
POS stations
Inventory Control Procedures
• Dry storage
Inventory Control Procedures
(Cont’d.)
• Monitor site inventory levels
– Monitored using Days-On-Hand (DOH)
– DOH is influenced by:
• The frequency of deliveries
• The operation’s size, style of service, and menu mix
• Available storage area
• The tolerance for menu substitutions
• Seasonal or local availability of product
• Special district requests
• USDA Donated Foods
Inventory Control Procedures
(Cont’d.)
• How do you calculate DOH?
• Step 1
Beginning inventory $_______
+ food purchased/USDA $_______
- ending inventory $_______
= food cost $_______
• Step 2
Food Cost $________÷ ___ serving days
= daily food cost $________________
• Step 3
Ending inventory $_________________
÷ daily food cost $_________________
= days of inventory on hand _________
• Step 4
Number of serving days ______
÷ days of inventory on hand ______
= inventory turnover ______
Inventory Control Procedures
(Cont’d.)
• Product codes and lot numbers
Inventory Control Procedures
(Cont’d.)
• Monthly physical inventory
– Actual count of food and supplies
– Consistently taken on last day of each month
– Inventory all storage areas: dry storage, refrigerators, freezers, kitchen, and serving
lines
• Inventory value measures the full operational month
– Take inventory a day earlier, your food cost appears lower because you’ll have an
extra day of meals sold
– A day later, your food cost will be higher because it appears that you used more food
to generate the meal sold during the operating month
• Recommended that two people take inventory
Inventory Control Procedures
(Cont’d.)
• Food is accurately labeled and dated
– Dating format
– mm/dd/yy, 05/10/16
• First In First Out (FIFO)
Receiving and Storage Areas
• Thermometers and proper equipment, such as carts, are available
Receiving and Storage Areas
(Cont’d.)
• Product specifications, including product codes, are available
Receiving and Storage Areas
(Cont’d.)
• Written receiving procedures are available, and school nutrition personnel
have been trained in their use
Receiving and Storage Areas
(Cont’d.)
• Storage areas are temperature controlled.
Receiving and Storage Areas
(Cont’d.)
• Storage areas are properly maintained and well-ventilated.
Receiving and Storage Areas
(Cont’d.)
• Storage areas are adequately secured.
Receiving and Storage Areas
(Cont’d.)
• Proper placement in storage areas
Receiving and Storage Areas
(Cont’d.)
• Storing fresh produce
Receiving and Storage Areas
(Cont’d.)
• Control food cost by reducing waste
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Purchasing too much
Inventory unknown
No FIFO
Spoilage
Wrap Up Activity
• What can you take back to your school?
– Inventory management best practices activity
“It has been said, what we know and what we
believe is of little consequence. It is what we do
that is important…”
- Frank Yiannas, author of Food Safety Culture, Creating a BehaviorBased Food Safety Management System.
Sources and Resources
• The Institute of Child Nutrition
– Inventory Management and Tracking
– http://www.theicn.org/ResourceOverview.aspx?ID=431
• School Nutrition Association
– Keys to Excellence: Standards of Practice for Nutrition Integrity
– https://schoolnutrition.org/keys/
Mission Statement
Develop extraordinary school nutrition professionals and
provide strategies to increase consumption of healthy
school meals.
Districts and schools in Tennessee will
exemplify excellence and equity such that all
students are equipped with the knowledge and
skills to successfully embark on their chosen
path in life.
Excellence | Optimism | Judgment | Courage | Teamwork
Nondiscrimination Statement
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices,
and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin,
sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.
Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign
Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech
disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in
languages other than English.
To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at:
http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:
(1) mail: U.S. Department of Agriculture
Office of the Assistant Secretary for Civil Rights
1400 Independence Avenue, SW
Washington, D.C. 20250-9410;
(2) fax: (202) 690-7442; or
(3) email: [email protected].
This institution is an equal opportunity provider.