San Miguel and A Soriano
04 May 2013
Viewpoint:
Kristin Davis, General Manager, Farmers Restaurant
Time Context:
After Kristin’s meeting with her boss
I. Problem Statement
Difficulties in managing the inventory
II. Statement of the Objective
To maintain the standard level of 29%-36% of on hand inventory level to meet the customer demand in 1 month time.
III. Areas of consideration
Strengths
The restaurant has online inventory system to assist managers in determining on-hand inventory & gauging how well the restaurant is controlling food costs.
Weekly monitoring of appropriate level of inventory to ensure that the food is fresh and within expiration
Perseverance to keep customers and attract new ones
Weaknesses
Above average food cost
They have no standard inventory ordering system
Declining number of customers
Frequent spoilage of menu items
Opportunities
Look for affordable raw materials supplier but not compromise its quality
Earn money out of the leftover food
Threats
Tough competition with other restaurants
There are some uncontrolled factors that affect the efficiency of online inventory system like the system downtime or internet access.
IV. Assumptions
V. Alternative Courses of Action
ACA 1: On line perpetual inventory
Transactions are recorded immediately and always up to date
ACA 2: Job Enlargement
This would be applied to current staff to take charge of inventory scheduling and hire a new one to fill up the current job opening.
ACA 3: Attend seminars or short courses about inventory management and forecasting technique.
VI. Analysis
ACA 1
Advantages
Disadvantages
Effective tools for accuracy of inventory and productions.
Continuous monitoring of inventory withdrawals.
Added cost of record keeping.
Possible errors in verifying records.
ACA 2
The company can choose among the best applicants who are well experienced and knowledgeable about inventory management
Familiarization of
Viewpoint:
Kristin Davis, General Manager, Farmers Restaurant
Time Context:
After Kristin’s meeting with her boss
I. Problem Statement
Difficulties in managing the inventory
II. Statement of the Objective
To maintain the standard level of 29%-36% of on hand inventory level to meet the customer demand in 1 month time.
III. Areas of consideration
Strengths
The restaurant has online inventory system to assist managers in determining on-hand inventory & gauging how well the restaurant is controlling food costs.
Weekly monitoring of appropriate level of inventory to ensure that the food is fresh and within expiration
Perseverance to keep customers and attract new ones
Weaknesses
Above average food cost
They have no standard inventory ordering system
Declining number of customers
Frequent spoilage of menu items
Opportunities
Look for affordable raw materials supplier but not compromise its quality
Earn money out of the leftover food
Threats
Tough competition with other restaurants
There are some uncontrolled factors that affect the efficiency of online inventory system like the system downtime or internet access.
IV. Assumptions
V. Alternative Courses of Action
ACA 1: On line perpetual inventory
Transactions are recorded immediately and always up to date
ACA 2: Job Enlargement
This would be applied to current staff to take charge of inventory scheduling and hire a new one to fill up the current job opening.
ACA 3: Attend seminars or short courses about inventory management and forecasting technique.
VI. Analysis
ACA 1
Advantages
Disadvantages
Effective tools for accuracy of inventory and productions.
Continuous monitoring of inventory withdrawals.
Added cost of record keeping.
Possible errors in verifying records.
ACA 2
The company can choose among the best applicants who are well experienced and knowledgeable about inventory management
Familiarization of