CHAPTER 6: STORING AND ISSUING CONTROL

assalamualaikum and hello again guys! today, we are going to talk about storing and issuing control. which in chapter 6 of hospitality cost control. without further ado, lets get to the topic.

Directs and stores

• Direct

- Directs are charged to food cost as they are received, on the assumption that these perishable items have been purchased for immediate use.

-These food will be moved to appropriate facilities in or near the kitchen and will be used entirely in food preparation on the day they are received.

• Stores

- Described as consisting of staples.

- When purchased, these foods are considered part of inventory until issued for use and are not included in cost figures until they are used.

- Using requisition form.

Storage system goals

Storing system objective:

1. To determine the value of goods held in stock
2. To compare the value goods actually in the stores at particular time
3. To list slow moving items
4. To compare the usage of food with food sales, to calculate food % and gross profit
5. As a deterrent against loss and pilferage

Inventory Turnover

-  It is a measure of the number of times inventory is sold or used in a time period such as a year.

- The rate is calculated by means of the following formulas:

• Average Inventory = (Opening inventory + Closing inventory) divided by 2
• Inventory turnover = Food cost divided by Average inventory

Physical and perpetual inventory control systems

• Physical Inventory 

- Actual account in all storage 

- Taken on at the end of each month (in order 2 or 3 times a year)

- To determined food cost

• Perpetual Inventory

- Running record of balance on hand for each item of good in a store room

- provides a continuing record of food and supplies purchased in storage and used

Bin cards

- A document that records the status of a good held in a stock room. 

- A typical retailing business with a large stock room will use a bin card to record a running balance      of stock on hand

- Stock received and notes about problems associated with that stock item.

Controls for issuing products from storage

1. Condition of facilities and equipment
2. Arrangement of foods
3. Location of facilities
4. Security of storage areas
5. Dating and pricing of stored foods

hope you you folks can benefit the knowledge from this entry. as usual, stay tune for the next blog! thank you.