Inventory
INTRODUCTION
"Inventory" to many business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Likewise, merchandise stocks in a retail store contribute to profits only when their sale puts money into the cash register. In a literal sense, inventory refers to stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small and large businesses cannot absorb the types of losses arising from poor inventory management. Unless inventories are controlled, they are unreliable, inefficient and costly. Inventory management is an important part of a business because inventories are usually the largest expense incurred from business operations. Most companies will use an inventory management system that will track and maintain the inventory required to meet customer demand. Most systems used by companies are linked to the management or accounting information system, increasing the effectiveness of their operations Inventory management is managing the parts or stocks of materials in any form and stabilizing the flow of materials considering the variability in demand. It is very important that the inventory plans are structured in such a way that they accommodate variability in demand especially when the company deals with multiple products.
1.0 SUMMARY
Farmers’ restaurant is a full service restaurant offering variety of breakfast, lunch, and dinner items. The restaurant industry is competitive having over 1600 restaurants in the Grand rapid/Wyoming metro area alone. Its competitors are located within 20 miles of the farmers restaurant. Kristen Davis is the general manager for the farmers restaurant located in grand metro
"Inventory" to many business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Likewise, merchandise stocks in a retail store contribute to profits only when their sale puts money into the cash register. In a literal sense, inventory refers to stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small and large businesses cannot absorb the types of losses arising from poor inventory management. Unless inventories are controlled, they are unreliable, inefficient and costly. Inventory management is an important part of a business because inventories are usually the largest expense incurred from business operations. Most companies will use an inventory management system that will track and maintain the inventory required to meet customer demand. Most systems used by companies are linked to the management or accounting information system, increasing the effectiveness of their operations Inventory management is managing the parts or stocks of materials in any form and stabilizing the flow of materials considering the variability in demand. It is very important that the inventory plans are structured in such a way that they accommodate variability in demand especially when the company deals with multiple products.
1.0 SUMMARY
Farmers’ restaurant is a full service restaurant offering variety of breakfast, lunch, and dinner items. The restaurant industry is competitive having over 1600 restaurants in the Grand rapid/Wyoming metro area alone. Its competitors are located within 20 miles of the farmers restaurant. Kristen Davis is the general manager for the farmers restaurant located in grand metro