Storage and inventory

FNS200

Storage

• holding of products under proper conditions to ensure quality unit time of use

• links receiving and production

• Proper storage maintenance, temperature control and cleaning and sanitation are major considerations in ensuring quality of stored foods

  • ventilation etc

Storing

• check stock dates

• check temperature

  • fridge should be 4 degrees

  • freezer should be -3 → -17

• keep storage areas clean

• store items 6 inches off the floor

Requirements for storage areas

• ventilated

• adequate lighting 

• appropriate temperature range 

• slip resistant and easy to clean floors 

• windows opaque to protect from direct sunlight 

• humidity range 

• shelving - sturdy, non absorptive surfaces 

Storage areas- dry storage

• no freeze or fridge

• provide protection from elements, insects, rodents and theft 

• separate from cleaning and pesticide storage

• Goods should be 6 inches off the floor

• shelves should be 5cm or 2 inches from the wlal

Humidity range for dry storage

• 50-60%

Temperature range for dry storage

• 50 -70 degrees F

• 10-21 degrees C

  • room temperature or a little colder

Low temp storage

• walk in or reach in fridge or freezer 

• for preservation of quality and nutritive value 

• storage space must meet production needs and menu needs 

  • Fridge 

  • tempering box → thaws foods 

• Temperature should be monitored min 2 times a day 

Humidity of low temp storage

• 75-95% humidity 

• higher than other because fresh foods require this 

Refrigerator temperature

• below 4 degrees c (41 f)

Foods in fridge top to bottom

• Cookes and RTE foods 

• raw fish 

• raw unground beef 

• raw pork, ham, sausage, bacon 

• raw ground beef and pork 

• raw poultry 

Storage freezer temp

• -10 → 0 F

• -23 → -18 C

Why is proper storage important 

• important in spoilage prevention 

  • can be a criticla control point 

• prevent food adulteration 

• prevent theft and pilferage 

• inventory control 

Inventory

• record of all material assets owned by an organization 

• supported by the presence of products in storage areas 

• valuable resources to the operation 

• accurate records are important for 

  • information of food and supplies stock 

  • determine purchase needs 

  • data for food cost control

  • prevention of theft and pilferage 

Physical inventory

• periodic actual counting and recording of products in stock in all storage areas 

Perpetual inventory

• purchases and issues continuously are recorded for each product in storage 

• balance in stock is avaialbel at all times 

• supported by computerized inventory systems 

Food cost determination

• Cost of food available - ending inventory = cost of food used 

• Begining inventory = total of all products in storage + purchases 

Inventory control

• must have accurate pricing and accurate counts 

  • count by item or count by case

Inventory control tools

• all subsystems owrk together

• major function of control system

  • coordinate activities

  • influence decisionss and actions

  • assure that objectives are being met

    • make sure that you have enough of the correct resources to make the products that you want

  • decision making

Inventory turnover

• estimation of how quickly products being brought in are used 

  • done on a monthy basis

  • food cost would be food cost for that month

  • ability to control the amount of product held in inventory

  • turnover of 2 to 4x per month is what you want to have

• monitors the effectiveness of inventory control

Inventory turnover calculation

• Inventory turnover = cost of food used / average food inventory 

  • Average food inventory = (Begining + ending inventory) / 2

ABC method of inventory

• classify products with ABC according to value 

  • a is the highest and C is the lowest 

• Effort, time and money for inventory control should be allocated among products according to their value 

Minimum - maximum method

• tool for controlling inventory by establishing lower and upper levels for each product in storage 

• min is the safety stock that has to be maintained at a constant level 

• max is the highest quantity desired to be in inventory 

• When lookign to reorder look at

  • lead time - how long it takes from ordering to receiving the item (may be longer depending on how far away the supplier is

  • Usage rate - how fast you use the product

    • determined by experience and forecasting

  • Reorder point - established by the lead time and usage rate

Inventort valuation mehtods

• ensuring that valuing is consistend within an accounting period 

  • actual purchase price 

  • weighted average 

  • FIFO 

  • LIFO

  • Latest purchase price 

Ethical considerations

• buyers face ethics whcih change how they buy things

  • this can affect their performance

3 categories of ethical considerations

• efforts to gain inside information about competitors that will benefit competition 

• Activities that allow buters to gain personal benefits from suppliers 

  • try to persuade you with bribery 

• activities that manipulate suppliers to benefit the purchasing 

  • suppliers may be local and scared not to give you waht you want 

  • takign advantage of suppliers 

Rules in code of ethics

• set of rules for standards of professional practice or behaviour established by a group

  • no accepting gifts 

• influneced by codes of individuals 

• standard- the measure of what is expected to happen 

  • many things have standards in the food industry 

  • eg. no child labour etc 

Ethics management

• implmentation by managers of planning, organizing, staffing, leading and controlling you can ensure that ethics are established formally and explicitly in daily organizational life 

  • to control ethical conduct, performance standards must be established and continually monitored and appropriate appreciative or corrective action should be taken 

• There must be transparancy and should be able to see if things are not being handled ethically