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12 Cards in this Set
- Front
- Back
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INVENTORY MANAGEMENT
Perpetual |
Updated each time an item is placed in or taken out of storage
-Running record |
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INVENTORY MANAGEMENT
Physical |
Actual count on all goods on hand
-End of Month -Asset on Balance Sheet |
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INVENTORY MANAGEMENT
Fixed Order Quantity |
Determines Order point
(Average daily use)(lead time) + Safety Stock -lead time is # of days from placing order to delivery |
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INVENTORY MANAGEMENT
Par Stock Method |
Sets a par level for EACH ITEM
If par is 10 and you have 8......order 2 |
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INVENTORY MANAGEMENT
FIFO |
First in First out
Stock Rotation |
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INVENTORY MANAGEMENT
Mini-Max stock |
Stock is allowed to deplete to safety level before new order is placed
-Establishes a minimum & maximum amount to have on hand -Ordered goods when minimum is reached and only in the amount needed to reach the maximum level Amount ordered is THE SAME EACH TIME |
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INVENTORY MANAGEMENT
ABC Inventory Classification System |
A = 10-20% of the toal # of items consitute 60-80% of total annual value of purchases
-VITAL/HIGH VALUE ITEMS -Meats, Protein Foods C= 50-60% of inventory items comprise only 5-10% of the value -TRIVIAL/LOW VALUE Tightest controls needed for A items |
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DETERMINE VALUE OF INVENTORY
Purchase Price Method |
Based on actual purchase price of each item
-Add value of all products on hand |
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DETERMINE VALUE OF INVENTORY
Weighted Average Purchase Price |
-Based on avg price paid over time
-Time Consuming |
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DETERMINE VALUE OF INVENTORY
FIFO Value |
Use the most recent price paid for the # of units on inventory
Tends to Price inventory HIGH |
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DETERMINE VALUE OF INVENTORY
LIFO Value |
-Uses oldest price paid
-Usually UNDERESTIMATES -Use if pay taxes on inventory |
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DETERMINE VALUE OF INVENTORY
Removal Procedures |
-Written Orders
Central Ingredient Room |
