Receiving, Storage, and Inventory

The receiving function 2 objectives

• Make sure food and supplies received matches PO

• Prevent product loss by mishandling and theft

5 key steps of the receiving process

1. inspect delivery against PO

2. Inspect delivery against invoice

3. accept delivery if quality/quantity spec are met

4. complete receiving records

5. transfer goods to appropriate storage

2 traits of competent personnel

• trained to recognize acceptable/inferior products

• able to complete paperwork/computerized tasks

Needed equipment for receiving

scales, thermometers, hand truck/forklift

Necessary documents for receiving

• receiving schedule

• specifications

• purchase orders (facility generated)

• invoice (vendor generated)

Responsibilities of receivers

• check order against PO and Invoice

• inspect food upon arrival

• check frozen items for evidence of thawing or freezer burn

5 good receiving practices

• check expiration dates

• observe quality under the “facing layer”

• spot check “catch weights”

  • weights may vary

  • make sure to weigh it

• sign only for what is received

• rejecting products that don’t meet specifications

What is standing order receiving?

Driver takes inventory and supplies buyer with product per par levels

What is blind receiving?

invoice with quantity ordered “blacked out”

• sending what they have

• receivers have to count each item individually

What is electronic receiving?

• scanners for use w/ QR codes, UPCs, and tabulator scales

2 objectives of storage

• maintain optimal quality of food/supplies

• Prevent loss of merchandise

3 ways spoilage can be controlled by

1. FIFO

2. Clean environment

3. proper storage conditions

What is the recommended ambient storage temp in a dry storage area?

50-70 degrees F

What is the recommended humidity level for dry storage?

50-60%

Temp guidelines for meat

32-40 degrees F

temp guidelines for fresh fruit, veggies, dairy

<41 degrees F

temp guidelines for a freezer

-10-0 degrees F

You should keep food __ inches off the floor

6 inches

Keep food __ inches from ceiling

18 inches

Keep chemicals _____ from food

separate

4 ways to protect inventory

1. limit access to authorized personnel

2. require requisitions when products are removed

3. maintain accurate records

4. monitor inventory levels

What is physical inventory?

actual count of items on hand

What is perpetual inventory?

records are updated continuously; items added when received; subtracted when used

What is ABC inventory analysis?

• divides items into 3 categories based on their cost value

• A: high value items

• B: moderate value items

• C: low value items

What is FIFO?

• First in, first out

• older inventory is assumed to be used first

What is LIFO?

• Last in, first out

• newest inventory is assumed to be used first

Inventory turnover

A measure of operational efficiency

Benchmark turnover for average FS operation

2-4x/month

Benchmark turnover for fast food operation

3x/week

First step of calculating inventory turnover

Calculate average inventory:

• opening + closing inventory

• divide by 2

Second step of calculating inventory turnover

Calculate Cost of Goods Sold (COGS)

• opening inventory + purchases - closing inventory

Third step of calculating inventory turnover

Calculating inventory turnover rate

• COGS/average inventory