Dining Facility Inventory Management
Inventory Objective Value
Last Month’s Earnings: $60,000.00Divide by Last Month’s Number of Operational Days:30Equals (Average Daily Earnings): $ 2,000.00Times Target Days of InventoryX 6Inventory Objective $12,000.00
Surplus Inventory Value
Last Month’s Ending Inventory: $20,000.00Minus Inventory Objective Value:$12,000.00Equals Surplus Inventory Value $ 8,000.00DSS Notes:If the dining facility was not open the previous month, the inventory value (EOM inventory) will show as a surplus.If the dining facility had less than 100 average lunch headcount for the previous month, the inventory objective is increased by 25%.
Reducing Surplus Inventory
Do it over a period of months time.Don’t start running out of food.Must first establish good menu planning, ordering and inventory control procedures.Key First Step: Establish a Cycle MenuThe Menu is the central management document around which the whole food service operation revolves.A Cycle Menu is a menu for a certain number of days or weeks that is repeated after a set amount of time.Accounting Period – 1 Month.
Inventory Control
Date all food items with date received.Check dates in ration storage areas on a routine basis to determine if they are being used within a 6-day period.Food may no longer be on the Cycle Menu.Food may have limited use on the Cycle Menu.SPV ordering sizes too big. Be careful about reducing Prime Vendor Package sizes ($$$=Distribution Fees).DFAC orders rations without checking:BOHDue-insDue-outs
Inventory Control
Use automated (EXCEL) Disposition of Subsistence to track food items over a menu cycle or month’s time.Start tracking next month.Look at a previous accounting period. Use:Monthly InventoriesSPV ReceiptsKitchen RequisitionsAFMIS Disposition of Subsistence (coded A,B,C)Determine if your running balance is set at the right level.Too high = surplus inventoryToo low = run outs
Par Level Management
Targeted Stockage ObjectivesWork well with routine/daily use items (predictable movers)Can use to establish standing ordersSet Par Levels based on:Cycle MenuExpected HeadcountUsage HistoryEverybody must be comfortable with Par Levels.Reduced Inventory = Less Inventory work.
Ordering & Inventory Control
Ordering Rations:BOHDue-insDue-outsPar LevelsIncreased Headcount = increased stockage levels.Conduct and track weekly inventories.Field residualsLarge quantitiesSlow or non moving items
Dining Facility Inventory Management
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