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CHAPTER ONE
1.0 INTRODUCTION
1.1 Background
Most restaurants are faced with this problem and have to spend extra capital so as to be able to
keep track of their stock. One example of such companies is Salem University restaurant. Salem
University restaurant is a restaurant that was started in 2015 by Management. It is situated in
university campus. Once it was started the restaurant immediately became the talk of the school
meaning the management had to put up his game so as to meet the demands of his students.
Though he was able to make his restaurant more appealing to his customers there are certain
factors that are proving to be tough to deal with. He has had a huge problem managing his stock
manually and that’s where I come in.
Currently at Salem University and the restaurant industry in general, restaurant staff and
managers are forced to keep track of inventory by hand. This means that they must count what
they have sold and what they have left at the end of each day. They must also fill out order forms
to be sent to vendors so that they can restock their inventory in preparation for the next week.
This wastes valuable man hours and is a rather simple task to automate using my system.
I propose a solution to this issue by developing system that keeps track of food menu and
inventory in restaurants and updates it according to daily sales. Each food item is linked to its
respective supplies and as each product is sold the ingredients utilized in making that product are
also utilized. These changes in inventory are kept track of through utilizing a database.
I propose to create a system that will help restaurants to keep track of each and every product
supply by dynamically linking it to the product and as a result create a dependent relationship to
that product. At a specific time period (typically the end of the week); if the inventory is below
the threshold level, order forms to the specific suppliers are generated in order to restock the
required items for the next week. The project also makes smart analysis on the type of food most
requested and the time or period it is most requested. This helps managers to know their most
popular foods and when their demand is high.
1.2 Statement of problem
Most restaurants are facing various problems when it comes to stock management. The
management of Salem University Restaurant cited various complaints regarding a basic
resources requirement list that has to be maintained manually by the staff. To keep track of their
inventory levels they have to calculate a list of the supplies or items utilized during a course of
time, calculate and analyze the requirements for the future, and place their next order to the
vendors if needed. This process takes up a lot of time and human effort, and is also prone to
human error.
This poses a problem of a situation that the staff at Salem University as well as many other
restaurants faces. It takes up a lot of time to manually keep track of sales and place correct orders
to vendors, wasting useful labor in trivial works. A product which would assist in tackling the
above mentioned problems would prove to be fruitful to clients such as Salem University and
other restaurants as this product would help convert the unproductive time to something more
useful, by removing the unnecessary error prone complications and efforts.
1.3 Objectives:
1. To minimize capital investment in inventory by eliminating excessive stocks. Restaurant
owners will be able to know the type of food their customers enjoy and the type that is
not popular to the customers. This will enable them to make the necessary changes to
avoid incurring losses.
2. Maximize profit. Restaurant owners will be able to know the most popular foods by their
customers and what time the customers prefer the food. This will assist them to make a
menu that will attract more customers hence increasing their profits.
3. To ensure efficiency. The basic idea involved here is that each item will be linked to its
required supplies which are stored in a database. At the end of each day the system will analyze
the total sale of menu items and proportionately deduct an appropriate amount from the resource
database. Then it will compare the current available resources with the threshold level of each
supply. If it finds that certain supplies are almost out of stock, it will generate a purchase order
for those items and send it to the manager or owner for approval.
4. The system will ensure groceries are tracked correctly, timely orders will be sent out to
the vendors or suppliers, and the inventory will be maintained and updated at all times.
The system will also keep track of the shelf life of resources. If any product or supply is about to
expire the system will inform the manager or owner the details of the quantity that is near its
expiration date.
1.4 Research questions
How will the system solve the problems faced by restaurants in stock management?
Will the system work effectively to solve the stated problems?
How will the system increase profits to the restaurant?
1.5 Justification
The system will help improve profits and efficiency for restaurants. Restaurants owners and
managers will be able to easily regulate their stock without any delays in supply. This will ensure
that the restaurant always has ready stock avoiding delays and lack of certain food because of
lack of supplies.
The system will help restaurant to save time. The restaurants will be able to save a lot of time
that they would have spent making orders, calculating profits, supplies utilized and amount
needed to purchase new supplies. This time will be spent doing other things that are beneficial to
the restaurants.
The system will help restaurants to reduce unnecessary expenses. Capital spent on people and
resources used to deal with stock calculations and tracking will no longer be necessary. The
system will be able to do this on its own hence enabling restaurants to save money.
It avoids shortage of supplies and duplicate ordering. The system will ensure that supplies are
immediately ordered once they are almost running out. It will also ensure no mistakes are carried
out when making the orders.
1.6 Scope of the project
The project runs on the basic idea that each item will be linked to its required supplies which are
stored in a database. At the end of each day the system will analyze the total sale of menu items
and proportionately deduct an appropriate amount from the resource database. Then it will
compare the current available resources with the threshold level of each supply. If it finds that
certain supplies are almost out of stock, it will generate a purchase order for those items and send
it to the manager or owner for approval.
The system will also ensure groceries are tracked correctly, timely orders will be sent out to the
vendors or suppliers, and the inventory will be maintained and updated at all times. The system
will enable restaurant owners to be able to know the type of food their customers enjoy, the time
most food is consumed and the type of food that is not popular to the customer.
The system will also keep track of the shelf life of resources. If any product or supply is about to
expire the system will inform the manager or owner the details of the quantity that is near its
expiration date.
1.7 Limitations
1. Financial constraints
Conducting research on the matter has proved to be financially cumbersome. This is because in
order to conduct proper research there are a lot of activities that are entailed. The activities
include transport costs, internet costs, phone credit costs etc
2. Time
Time has been a hindering factor since am still a student and I have a school schedule I need to
adhere to. This in general has affected the time put in the project so as to make it a success.
Convincing Salem University management to take up the idea, Coming up with a system is one
thing but convincing business people to buy into it is another. Most restaurant owners will be
skeptical to buy into the idea due to fear of incurring losses in case the system does not work.
Efficient inventory control methods can reduce but cannot eliminate business risk. Using the
stock inventory management system will not guarantee the company profits. The company may
still be faced by financial losses. Hence the company should not only depend on the system but
also depend on its financial advisers and other resources.
CHAPTER 2.
LITERATURE REVIEW.
2.0 Introduction
So as to be able to tackle this chapter we fast of all need to understand what a literature review is
all about.
The aim of a literature review is to show your reader that you have read, and have a good grasp
of, the main published work concerning a particular topic or question in your field. This work
may be in any format, including online sources. It may be a separate assignment, or one of the
introductory sections of a report or dissertation. The review is guided by ones research objective
or by the issue or thesis someone is trying to argue out that will also provide the framework for
ones further work. (Roberts, 2008)
This article focuses on precisely that. It provides an inbound look on inventory management and
its relation and impact in the restaurant industry.
2.1 What is a restaurant?
A restaurant is “a place where people pay to sit and eat meals that are cooked and served on the
premises. (Oxford Dictionaries, 2012). They have a similar business model to hotels and airlines,
which already apply revenue management (RM) but their inventory is far more complex.
2.2 Types of restaurant technologies
Superior customer service is at the heart of every great restaurant, and new restaurant
technologies can give restaurants an edge in responding to customer needs (Strong 2013). From
providing entertainment to expediting service, restaurant technology is creating a better dining
experience for customers. Savvy restaurateurs across the country are using new, modern devices
to keep their restaurants on the cutting edge of the industry. (Reynolds, 2008).
2.2.1 Entertainment restaurant technologies eg. iPad apps, gesture-enabled games
projected onto restaurant floors, designed to entertain kids while they wait for their meals.
Of course, social media is a form of entertainment, too. Many restaurants find that sites like
Facebook are useful, not only for building a loyal customer base, but also for enhancing the order
process. Facebook-based ordering, along with Facebook payment integration, is one of the
emerging restaurant technologies designed to increase restaurant sales and enhance customers’
overall dining experience. (Ottenfeld, 2008)
2.2.2 Increasing the appeal of the restaurant industry for many customers is the escapism
of entering the restaurant and receiving friendly and efficient service.
As restaurant owners are learning, service can be greatly enhanced by restaurant technologies
that improve communication between staff members and customers. (Raj, 2008).
2.2.3 Table Tracker
It is a new piece of restaurant technology that helps servers locate customer tables
quickly.Perfect for fast-casual restaurants, it serves the same purpose as old-fashioned table
cards, designed to help servers find customers. With Table Tracker, a customer places an order
and is given a device that remotely communicates with a touch-screen PC in the expeditor area,
allowing runners to instantly know where an order is going, and how long a customer has been
waiting. The result is faster, better service, more efficient staff and satisfied customers. (Hill
2014)
2.2.4 Digital Survey Tools
They offer restaurants the capability to really listen to their customers. These handheld
devices enable customers to provide immediate feedback, and negative feedback can be set to
alert management, allowing for quick response to potential problems. A built-in calculator helps
customers calculate tips or split bills, and a promotional feature keeps even the regulars
interested, allowing for giveaway potential with completed surveys. (shabbir, 2012).
2.2.5 Wireless paging systems
They enable restaurants to preserve ambiance while communicating with
customers.Available in a wide variety of styles, these pagers enhance customer service by
giving more precise wait times, improve table turnover times through more effective
communication, and increase overall efficiency of restaurant staff. (Sareyka, 2014).
2.2.6 Inventory managemet systems
This are systems that allow restaurant users to manage their inventory through various computer
systems. Inventory management systems assist restaurant owners in tasks such as automatic
product ordering, avoiding overstocking or understocking, increasing profits, stock management
etc. (Cohen, 2007).
2.3 Inventory Management History
In the earliest days of shop keeping, merchants wrote down purchases, or they looked at how
many units were gone at the day's end and then did their best to forecast future needs. Experience
and intuition were key skills, but it remained an inexact method, even when applied to operations
that were quite small by today's standards. (Hoffman, 1997)
After the Industrial Revolution, efficiency and mass production became the main goals of
businesses, along with an improved customer experience at the point of sale.(Miller,1997) A
team at Harvard University designed the first modern check-out system in the early 1930s. It
used punch cards that corresponded with catalog items. A computer would read the punch cards
and pass the information to the storeroom, which would then bring the item up front to the
waiting customer. Because of the automated system, the machines could also generate billing
records and manage inventory. (Toelle, 1996)
The punch card system proved to be too expensive to use, but a version of it is in use today in
some stores, where merchants place cards with product information on the aisle for customers to
select and bring to the checkout line. This usually applies to items that are expensive or large and
to controlled items, such as medicines. (Krupp, 1997)
Merchants knew they needed a better system, and researchers created the forerunner of the
modern bar-coding system in the late 1940s and early 1950s. It used ultraviolet light-sensitive
ink and a reader to mark items for sale. Again, the system was too cumbersome and lacked the
computing power needed to make it work. Technology had yet to catch up with their ideas.
(Coulson, 1997)
The development of affordable laser technology in the 1960s revived the concept. Lasers allowed
smaller, faster and cheaper readers or scanners. The modern bar code, or the Universal Product
Code (UPC), was born and caught on just before the 1970s. As computing power became better,
the power of UPC codes to help track and manage inventory improved exponentially. (Sinha,
1994)
During the mid to late 1990s, retailers began implementing modern inventory management
systems, made possible in large part by advances in computer and software technology. The
systems work in a circular process, from purchase tracking to inventory monitoring to re-
ordering and back around again. (Robinson, 1999)
2.4 Role of Inventory Management
Food and supplies purchased, but not immediately used (inventory), often represent a significant
portion of operational revenue.(Adams, 2005) One classic method of controlling food cost is to
maintain inventory levels high enough to ensure menu items can be produced in the right
quantity, but low enough to not have excess product sitting in storage. This is called inventory
control. (Platten, 2008)
Not producing enough of each menu item, whether due to lack of raw ingredients or inadequate
forecasting, leads to customer disappointment and may violate program regulations. The goal is
to have all choices available to students but not have excessive amounts leftover. Although the
concept appears simple, it requires careful planning, standardized procedures, and monitoring to
achieve desired results. (Sturn, 2008)
In the past managers only needed to consider inventory control for their own facility in order to
control costs. The age of supply chain management has made school nutrition operators more
aware of the cost of inventory across the supply chain and the effect it has on end costs. (Peters,
2010) Producers, manufacturers, and distributors experience lower margins and waste when
anticipated sales do not materialize resulting in excess inventories of product. This cost is passed
along to the school district, which is why using predictable buying patterns will lower food costs
to schools. (Velthoen, 2012)
Other impacts of inventory management include:
2.4.1 Customer Satisfaction
Good inventory control means that your time to fulfill orders stays low. If you use your
inventory management system to analyze product sales, you can have your popular items in
stock and ready to instantly fulfill any customer's order. You also know which special orders sell
on occasion and have those products available in a limited quantity to keep your inventory costs
down and to develop a positive reputation for quickly filling special orders. (Root III,2006)
2.4.2 Pricing
When you have a well-designed inventory management system, you are able to reduce the
amount of time that products sit on your shelves.(Hunt, 2007) When you don't carry extra
inventory for extended periods of time, your inventory costs decrease. This is a savings that you
can pass on to clients in the form of lowering product prices. (Ronson, 2009)
2.4.3 Maximizing Efficiency
Another aspect of inventory management is efficient product handling. The design of the facility,
especially the location and arrangement of storage areas can affect the ease with which products
are delivered to production areas, as well as the security of inventory. Designing inventory forms
to match the layout of storage areas can reduce the time needed to count inventory. (Jacobs,
2005)
2.4.4 Financial Management
One of the most important goals of inventory management is improved financial control. The
financial goal of inventory management is to ensure that the maximum value is generated from
food and supply investments. (Hayes, 2011)In addition to the actual cost of acquiring inventory,
costs are associated with transporting and storing inventory. These costs are called carrying costs
and may include storage rental, utilities, insurance, cost of shrinkage, cost of obsolescence, cost
of wages and benefits for labor to move and count stock, and opportunity cost - how much more
you could have earned if the money were spent elsewhere. (Kimes, 1999)
2.4.5 Managing Quantities
The correct quantity of inventory is the level at which sufficient product can be produced to meet
customer demands no more, no less. (Wal, 2000)Some safety stock, a small cushion of inventory
for unpredicted usage, is necessary to prevent sites from running out of food. For many products,
this may mean setting a periodic automatic replacement level or a reorder point. Par levels are
usually set for items served daily such as milk, common ingredients used in multiple recipes e.g.
sugar, flour, spices. For entrees, fruits, vegetables, and bread products it is best to project serving
quantities for the week’s menu. (Tsang, 2011)
2.4.6 Food Safety
Food safety is a critical consideration in inventory management. It is very important to protect
food inventories from both unintentional and intentional contamination. Proper placement of
product in storage areas can ensure that raw products do not cross-contaminate food that will
receive no further cooking as well as prevent accidental contamination from chemicals.(Cooper,
2002)
2.4.7 Menu Planning
Menu planning is the underpinning of inventory control because the menu establishes what items
are needed and how frequently they are going to be used. (Chambers, 2001). Effective menu
planning requires considerable planning and skill to ensure that menus are cost effective, popular
with customers, and meet nutrition and program guidelines. (Berry, 2005) It is unlikely that
menus planned monthly by each site manager effectively control inventory.
Using a central cycle menu controls inventory by making the items and quantity needed
predictable. When the same items served together are repeated, a pattern emerges that, during
each cycle, can be used to predict what customers will purchase. This allows managers to
improve ordering forecasts. (Ballerini, 2007)
2.4.8 Forecasting and Ordering
Forecasting and order can greatly affect inventory control. When forecasting is not accurate and
products are ordered in excess,too much money is tied up in inventory, which reduces cash flow
this then leads to more opportunity for spoilage, the likelihood of theft is increased, more
products become obsolete, andthe quality of products deteriorate overtime.(Corbin, 2000)
Ordering based on menus is another alternative. Order guides are designed to match weekly
menus. Ordering by menu still requires that you establish the amount you would need to fulfill
the menu plus a small extra amount for safety stock. You still consider the amount committed
before the order arrives, and the amount currently on inventory. The only difference is the item
would not be ordered until right before it is on the menu. (Morrison, 2012)
2.5 HOW TO IMPROVE INVENTORY ACCURACY IN A RESTAURANT
Take inventory frequently. For some items it should be done daily, for others twice a week. At a
minimum it needs to be completed before placing weekly orders. (Richards, 2002). Also clean
out and organize your stock areas before taking inventory. Throw out items that have expired,
move similar items to the same shelf and in general, tidy up. (Israelit, 2011)
Take inventory after the restaurant has closed, or before it opens. You cannot take accurate
inventory while goods are being sold. Whatever time you pick, stick with it. If you always take
inventory on maybe on Tuesdays, but sometimes you do it at night and sometimes in the
morning, there will be fluctuations in week to week results. (Baker, 2005)
Take inventory before a new shipment arrives and then add the new stock to your counts. Do not
attempt to take inventory while deliveries are being made. Items will end up being double-
counted. (Roberts, 2008). You should also use Inventory Count Sheets. Have one for daily, one
for eg. weekly and standardize the items included and the unit each item is tracked in. Changes
in what items are tracked can cause large fluctuations in recorded inventory. (Jacobs, 2002)
When taking inventory, make part of the practice ensuring that items are being used on a First In,
First Out basis. (Millward, 2007) Older goods should be rotated to the front of shelves so they
are used first. Additionally, try to keep the amount of items you have on hand as low as possible
to reduce theft and spoilage. (Adams, 2005)
Use two people to take inventory. They should count items separately and then compare results
for anomalies. Pairing reduces errors and the temptation to manipulate results or pocket goods.
(Gilbert, 2008). Use the same staff members to take inventory. They will not only get faster at it,
but they will tend to be more consistent. (Doumenc, 2007)
Standardize what your unit cost is. The price of many items (like ground beef) changes week to
week. Use the latest price paid as the standard. It is the easiest to find and remember. (Amell,
2008.) As you standardize unit cost also ensure you maintain consistency. Using the same staff,
taking inventory at the same time and counting the same items are some of the easiest ways to
improve your accuracy. (Culnan, 2010)
2.6 Advantages & Disadvantages of an Inventory Management System
As a business owner, you can choose to rely on traditional hand counting methods or institute
some form of computerized inventory control. (Conrad, 2011). Both approaches have their
advantages and disadvantages, and it is important to weigh the relative advantages carefully.
2.6.1 Speed and Efficiency
An inventory management system makes everything from inputting information to taking
inventory much easier. Doing a hand count of inventory can take long, but with an inventory
management system, the same process can be done in a matter of hours. (McCarthy, 2011)
2.6.2 Document Generation
Managers and workers can use the inventory management system to automatically generate all
kinds of documents, from purchase orders and checks to invoices and account statements.
(Osmanbegovic, 2010) Managers can also use the inventory management system to
automatically order products when they run low.(Miller, 2005)
2.6.3 Timely Data
When dealing with a manual system, the data is only as accurate and up to date as the last hand
count. With an inventory management system, the management team can pull a report and
instantly see how many units are on the floor, how many have sold and which products are
selling the fastest. (Grant, 2013)
2.6.4 Reliance on Technology
With a computerized inventory management system, the company is at the mercy of its
technology. Outside factors like a power failure or the loss of Internet or network connectivity
can render the system temporarily useless. (Rodgers, 2012)
2.6.5 Accuracy Issues
A computerized system alone does not ensure accuracy, and the inventory data is only as good as
the data entry that created it. Companies that plan to use a computerized inventory management
system need to have a system in place to validate their data and check the numbers reported by
the system. A select hand count or targeted audit may be necessary to ensure the integrity of the
system.(Schmidt, 2010)
2.6.6 Risk of Fraud
Any computerized system carries the risk of intrusion, and with an inventory management
system comes the risk of fraud as well. A dishonest supplier could hack the system to receive
payment for products never delivered, or a dishonest employee could redirect checks to
themselves. (Catfolis, 2008)
2.7 Conclusion
The aim of the essay was to have an inbound understanding of what inventory management is
and its impact on restaurants on a technological scale.
We were able to look at the history of inventory management, seeing that it dates back to the
1930s where team at Harvard University designed the first modern check-out system It used
punch cards that corresponded with catalog items. A computer would read the punch cards and
pass the information to the storeroom, which would then bring the item up front to the waiting
customer. Because of the automated system, the machines could also generate billing records and
manage inventory. (Toelle, 1996)
We then were able to look at the different roles that inventory management plays. In the article
the roles where broad so as to be able to touch on most if not all of the sectors that inventory
management offers a role. In a specific point of view inventory management has its impacts on
the administration, the organization, suppliers and distributers and the clients or customers. Most
of its impacts as we so in the article are mostly positive as it has helped many organizations,
restaurants included, to maximize their profits, avoid losses due to factors such as late delivery of
stock, expiry of stock, overstocking, understocking, customer dissatisfaction due to lack of
commodities etc. . (Root III,2006)
We also looked on various methods of improving inventory management in our organizations.
Methods such as to take inventory before a new shipment arrives and then add the new stock to
your counts, clean out and organize your stock areas before taking inventory. Use two people to
take inventory, use the same staff to take inventory. Were just but a few points raised in the area.
We were able to realize that buy looking into this areas stock management in our organization
will tremendously improve leading to higher profits, better stock arrangement and avoidance of
theft from suppliers and employees etc. (Richards, 2002)
With all the content covered in this article we can come to a conclusion that inventory
management has made businesses have an easier time when it comes to their stock. It can also be
seen that inventory management in the restaurant sector has brought nothing but positive factors
to the industry.
CHAPTER THREE
RESEARCHMETHODOLOGY
RESTAURANT INVENTORY MANAGEMENT SYSTEM
(CASE STUDY OF SALEM UNIVERSITY RESTAURANT)
3.0 INTRODUCTION
This chapter presents the research methodology that was used in conducting the study. It
explains the research design, target population, sampling design, data collection and data
analysis.
3.1 OVERVIEW
The project proposes to develop a software that keeps track of inventory in restaurants and
updates it according to daily sales. Each food item is linked to respective resources, ingredients,
and as each product is sold the ingredients utilized in making that product are also utilized. These
changes in inventory are kept track of through utilizing a database.
The project also proposes to keep track of each and every ingredient by dynamically linking it to
the product and as a result create a dependent relationship to that product. At a specific time
period (typically the end of the week); if the inventory is below the threshold level, order forms
to the specific suppliers are generated in order to restock the required items for the next week.
The project also makes smart predictions on required inventory for the following week based
upon the predicted climate and possible occasions or events that may influence near future sales.
At the end of the week, the software takes into account all threshold levels, predictions, and other
factors to generate an order form, which after being verified by the manager is sent out to the
vendors.
3.2 FEASIBILITY STUDY
This is the assessment of the practicality of a proposed project.
It is the ability to complete a project successfully, taking into account legal, economic ,
technological, scheduling and other factors.
It allows project managers to investigate the possible negative and positive outcomes of a project
before investing too much time and money.
3.2.1 TECHNICAL FEASIBILITY
It deals with the technological resources to undertake the project. It asks the question are the
processes and procedures conductive to project success?
This study was a major factor while conducting my research. I had to check and see if the firm
had adequate technical and technological facilities to enable me to conduct the project. I had to
check if the firm had the necessary equipment to conduct the project.
3.2.2 ECONOMIC FEASIBILITY
It assesses the financial resources of the company in relation to the project. With regards to the
economic capability of the firm will the project run smoothly without any hindrances.
This is a major factor will conducting the project. I had to sit with the restaurant manager, Salem
University Restaurant, to see if the restaurant had the necessary finances to conduct the project.
We also had to analyse the impact of the project to the restaurant. We checked to see if the
impacts would be more or generate a higher profit that the level of money spent to conduct the
project.
3.2.3 LEGAL FEASIBILTY
This looks into the legal implications of the project.
I had to make sure that the project once completed will meet all legal and ethical polices set in
place.
3.2.4 OPERATIONAL FEASIBILITY:
This measures how well a company will be able to solve the problems and take advantages of
opportunities that are presented during the course of the project.
This entailed me looking into the impact the project would have on the restaurant. This are the
operations that the restaurant would be able to perform thanks to the project. I had to ensure that
the projects would be easy to use and operate.
3.2.5 SCHEDULE FEASIBILITY
Does the company have the necessary time resources to undertake the project. Will the project be
completed in due time.
This is a major factor for the restaurant. With regards to the resources spent by the restaurant the
project should be completed in due time to ensure it does not endure loss.
3.3 SYSTEM REQUIREMENTS
3.3.1 Functional requirements
The System aims at providing an efficient interface that will assist the user in management of
inventory, it shall also provide the user varied options for managing the inventory through
various functions at hand. The ingredient levels are continuously monitored based on their usage
and are checked for the threshold levels in the inventory and accordingly the user is alerted about
low levels of certain ingredients. The design is such that the user does not have to manually
update the inventory every time, the System does it for the user.
The System calculates and predicts the amount of usage for specific set days that are pre-set by
the user, it also alerts the user of an impending action to order ingredients before the specific day
set by the user. Therefore the user never has to worry about manually calculating the estimated
usage of the ingredients as the System does it for the user.
The simple interface of the System has functions like adding a recipe, removing or updating the
recipe. It also extends to functions such as adding a supplier for an ingredient, removing the
vendor, checking threshold levels, processing orders, altering processed orders etc.
3.3.2 Non-functional requirements
3.3.2.1 Usability
The system must be easy to use by both managers and chefs such that they do not need to read an
extensive amount of manuals.
The system must be quickly accessible by both managers and chefs.
The system must be intuitive and simple in the way it displays all relevant data and relationships.
The menus of the system must be easily navigable by the users with buttons that are easy to
understand.
3.3.2.2 Reliability
The System must give accurate inventory status to the user continuously. Any inaccuracies are
taken care by the regular confirming of the actual levels with the levels displayed in the system.
The System must successfully add any recipe, ingredients, vendors or special occasions given by
the user and provide estimations and inventoy status in relevance with the newly updated
entities.
The system must provide a password enabled login to the user to avoid any foreign entity
changing the data in the system. The system should provide the user updates on completion of
requested processes and if the requested processes fail, it should provide the user the reason for
the failure.
The system should not update the data in any database for any failed processes.
3.3.2.3 Performance
The system must not lag, because the workers using it don’t have down-time to wait for it to
complete an action.
The system must complete updating the databases, adding of recipe, ingredient, vendor and
occasions successfully every time the user requests such a process.
All the functions of the system must be available to the user every time the system is turned on.
The calculations performed by the system must comply according to the norms set by the user
and should not vary unless explicitly changed by the user.
3.3.2.4 Supportability
The software is designed such that it works even on systems having the minimum configuration.
The system is adaptable even if additional plugins or modules are added at a later point.
The data can be exported to the manager so as to make the system more portable.
3.3.2.5 Packaging
The system must be able to run on the Windows operating systems beginning with Windows XP,
and must be able to run on current releases such as Windows 10.
The software must incorporate a license key authentication process. The packaging must come
with a manual that details the use of the system, and also the instructions on how to use the
program. This manual may be included either in a booklet that comes with the software, or on
the disc that the software itself is on.
3.3.2.6 Interfacing
The system must offer an easy and simple way of viewing the current inventory.
The system must be able to display the relationships between suppliers, ingredients, and recipes
in an intuitive manner.
3.3.2.7 Legal
The software must be licensed on an individual basis for smaller companies, as well as through a
multi-license deal for larger corporations.
3.4 DATA COLLECTION
Data collection was conducted by way of primary data collection from one of the following
respondent; Mr Peter kamwaro, Salem University Restaurant, employees at the restaurant. The
target respondents were the most competent to answer questions on inventory management. The
data collection instrument used was:
3.4.1 Questionnaire
It was distributed by drop and pick method, where the firm was accessible and by email for the
others. This gave me first hand primary data which was reliable and accurate for analysis

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Salem University Restaurant Management System

  • 1. CHAPTER ONE 1.0 INTRODUCTION 1.1 Background Most restaurants are faced with this problem and have to spend extra capital so as to be able to keep track of their stock. One example of such companies is Salem University restaurant. Salem University restaurant is a restaurant that was started in 2015 by Management. It is situated in university campus. Once it was started the restaurant immediately became the talk of the school meaning the management had to put up his game so as to meet the demands of his students. Though he was able to make his restaurant more appealing to his customers there are certain factors that are proving to be tough to deal with. He has had a huge problem managing his stock manually and that’s where I come in. Currently at Salem University and the restaurant industry in general, restaurant staff and managers are forced to keep track of inventory by hand. This means that they must count what they have sold and what they have left at the end of each day. They must also fill out order forms to be sent to vendors so that they can restock their inventory in preparation for the next week. This wastes valuable man hours and is a rather simple task to automate using my system. I propose a solution to this issue by developing system that keeps track of food menu and inventory in restaurants and updates it according to daily sales. Each food item is linked to its respective supplies and as each product is sold the ingredients utilized in making that product are also utilized. These changes in inventory are kept track of through utilizing a database. I propose to create a system that will help restaurants to keep track of each and every product supply by dynamically linking it to the product and as a result create a dependent relationship to that product. At a specific time period (typically the end of the week); if the inventory is below the threshold level, order forms to the specific suppliers are generated in order to restock the required items for the next week. The project also makes smart analysis on the type of food most requested and the time or period it is most requested. This helps managers to know their most popular foods and when their demand is high.
  • 2. 1.2 Statement of problem Most restaurants are facing various problems when it comes to stock management. The management of Salem University Restaurant cited various complaints regarding a basic resources requirement list that has to be maintained manually by the staff. To keep track of their inventory levels they have to calculate a list of the supplies or items utilized during a course of time, calculate and analyze the requirements for the future, and place their next order to the vendors if needed. This process takes up a lot of time and human effort, and is also prone to human error. This poses a problem of a situation that the staff at Salem University as well as many other restaurants faces. It takes up a lot of time to manually keep track of sales and place correct orders to vendors, wasting useful labor in trivial works. A product which would assist in tackling the above mentioned problems would prove to be fruitful to clients such as Salem University and other restaurants as this product would help convert the unproductive time to something more useful, by removing the unnecessary error prone complications and efforts. 1.3 Objectives: 1. To minimize capital investment in inventory by eliminating excessive stocks. Restaurant owners will be able to know the type of food their customers enjoy and the type that is not popular to the customers. This will enable them to make the necessary changes to avoid incurring losses. 2. Maximize profit. Restaurant owners will be able to know the most popular foods by their customers and what time the customers prefer the food. This will assist them to make a menu that will attract more customers hence increasing their profits. 3. To ensure efficiency. The basic idea involved here is that each item will be linked to its required supplies which are stored in a database. At the end of each day the system will analyze the total sale of menu items and proportionately deduct an appropriate amount from the resource database. Then it will compare the current available resources with the threshold level of each supply. If it finds that certain supplies are almost out of stock, it will generate a purchase order for those items and send it to the manager or owner for approval.
  • 3. 4. The system will ensure groceries are tracked correctly, timely orders will be sent out to the vendors or suppliers, and the inventory will be maintained and updated at all times. The system will also keep track of the shelf life of resources. If any product or supply is about to expire the system will inform the manager or owner the details of the quantity that is near its expiration date. 1.4 Research questions How will the system solve the problems faced by restaurants in stock management? Will the system work effectively to solve the stated problems? How will the system increase profits to the restaurant? 1.5 Justification The system will help improve profits and efficiency for restaurants. Restaurants owners and managers will be able to easily regulate their stock without any delays in supply. This will ensure that the restaurant always has ready stock avoiding delays and lack of certain food because of lack of supplies. The system will help restaurant to save time. The restaurants will be able to save a lot of time that they would have spent making orders, calculating profits, supplies utilized and amount needed to purchase new supplies. This time will be spent doing other things that are beneficial to the restaurants. The system will help restaurants to reduce unnecessary expenses. Capital spent on people and resources used to deal with stock calculations and tracking will no longer be necessary. The system will be able to do this on its own hence enabling restaurants to save money. It avoids shortage of supplies and duplicate ordering. The system will ensure that supplies are immediately ordered once they are almost running out. It will also ensure no mistakes are carried out when making the orders.
  • 4. 1.6 Scope of the project The project runs on the basic idea that each item will be linked to its required supplies which are stored in a database. At the end of each day the system will analyze the total sale of menu items and proportionately deduct an appropriate amount from the resource database. Then it will compare the current available resources with the threshold level of each supply. If it finds that certain supplies are almost out of stock, it will generate a purchase order for those items and send it to the manager or owner for approval. The system will also ensure groceries are tracked correctly, timely orders will be sent out to the vendors or suppliers, and the inventory will be maintained and updated at all times. The system will enable restaurant owners to be able to know the type of food their customers enjoy, the time most food is consumed and the type of food that is not popular to the customer. The system will also keep track of the shelf life of resources. If any product or supply is about to expire the system will inform the manager or owner the details of the quantity that is near its expiration date. 1.7 Limitations 1. Financial constraints Conducting research on the matter has proved to be financially cumbersome. This is because in order to conduct proper research there are a lot of activities that are entailed. The activities include transport costs, internet costs, phone credit costs etc 2. Time Time has been a hindering factor since am still a student and I have a school schedule I need to adhere to. This in general has affected the time put in the project so as to make it a success. Convincing Salem University management to take up the idea, Coming up with a system is one thing but convincing business people to buy into it is another. Most restaurant owners will be skeptical to buy into the idea due to fear of incurring losses in case the system does not work. Efficient inventory control methods can reduce but cannot eliminate business risk. Using the stock inventory management system will not guarantee the company profits. The company may
  • 5. still be faced by financial losses. Hence the company should not only depend on the system but also depend on its financial advisers and other resources.
  • 6. CHAPTER 2. LITERATURE REVIEW. 2.0 Introduction So as to be able to tackle this chapter we fast of all need to understand what a literature review is all about. The aim of a literature review is to show your reader that you have read, and have a good grasp of, the main published work concerning a particular topic or question in your field. This work may be in any format, including online sources. It may be a separate assignment, or one of the introductory sections of a report or dissertation. The review is guided by ones research objective
  • 7. or by the issue or thesis someone is trying to argue out that will also provide the framework for ones further work. (Roberts, 2008) This article focuses on precisely that. It provides an inbound look on inventory management and its relation and impact in the restaurant industry. 2.1 What is a restaurant? A restaurant is “a place where people pay to sit and eat meals that are cooked and served on the premises. (Oxford Dictionaries, 2012). They have a similar business model to hotels and airlines, which already apply revenue management (RM) but their inventory is far more complex. 2.2 Types of restaurant technologies Superior customer service is at the heart of every great restaurant, and new restaurant technologies can give restaurants an edge in responding to customer needs (Strong 2013). From providing entertainment to expediting service, restaurant technology is creating a better dining experience for customers. Savvy restaurateurs across the country are using new, modern devices to keep their restaurants on the cutting edge of the industry. (Reynolds, 2008). 2.2.1 Entertainment restaurant technologies eg. iPad apps, gesture-enabled games projected onto restaurant floors, designed to entertain kids while they wait for their meals. Of course, social media is a form of entertainment, too. Many restaurants find that sites like Facebook are useful, not only for building a loyal customer base, but also for enhancing the order process. Facebook-based ordering, along with Facebook payment integration, is one of the emerging restaurant technologies designed to increase restaurant sales and enhance customers’ overall dining experience. (Ottenfeld, 2008) 2.2.2 Increasing the appeal of the restaurant industry for many customers is the escapism of entering the restaurant and receiving friendly and efficient service. As restaurant owners are learning, service can be greatly enhanced by restaurant technologies that improve communication between staff members and customers. (Raj, 2008).
  • 8. 2.2.3 Table Tracker It is a new piece of restaurant technology that helps servers locate customer tables quickly.Perfect for fast-casual restaurants, it serves the same purpose as old-fashioned table cards, designed to help servers find customers. With Table Tracker, a customer places an order and is given a device that remotely communicates with a touch-screen PC in the expeditor area, allowing runners to instantly know where an order is going, and how long a customer has been waiting. The result is faster, better service, more efficient staff and satisfied customers. (Hill 2014) 2.2.4 Digital Survey Tools They offer restaurants the capability to really listen to their customers. These handheld devices enable customers to provide immediate feedback, and negative feedback can be set to alert management, allowing for quick response to potential problems. A built-in calculator helps customers calculate tips or split bills, and a promotional feature keeps even the regulars interested, allowing for giveaway potential with completed surveys. (shabbir, 2012). 2.2.5 Wireless paging systems They enable restaurants to preserve ambiance while communicating with customers.Available in a wide variety of styles, these pagers enhance customer service by giving more precise wait times, improve table turnover times through more effective communication, and increase overall efficiency of restaurant staff. (Sareyka, 2014). 2.2.6 Inventory managemet systems This are systems that allow restaurant users to manage their inventory through various computer systems. Inventory management systems assist restaurant owners in tasks such as automatic product ordering, avoiding overstocking or understocking, increasing profits, stock management etc. (Cohen, 2007).
  • 9. 2.3 Inventory Management History In the earliest days of shop keeping, merchants wrote down purchases, or they looked at how many units were gone at the day's end and then did their best to forecast future needs. Experience and intuition were key skills, but it remained an inexact method, even when applied to operations that were quite small by today's standards. (Hoffman, 1997) After the Industrial Revolution, efficiency and mass production became the main goals of businesses, along with an improved customer experience at the point of sale.(Miller,1997) A team at Harvard University designed the first modern check-out system in the early 1930s. It used punch cards that corresponded with catalog items. A computer would read the punch cards and pass the information to the storeroom, which would then bring the item up front to the waiting customer. Because of the automated system, the machines could also generate billing records and manage inventory. (Toelle, 1996) The punch card system proved to be too expensive to use, but a version of it is in use today in some stores, where merchants place cards with product information on the aisle for customers to select and bring to the checkout line. This usually applies to items that are expensive or large and to controlled items, such as medicines. (Krupp, 1997) Merchants knew they needed a better system, and researchers created the forerunner of the modern bar-coding system in the late 1940s and early 1950s. It used ultraviolet light-sensitive ink and a reader to mark items for sale. Again, the system was too cumbersome and lacked the computing power needed to make it work. Technology had yet to catch up with their ideas. (Coulson, 1997) The development of affordable laser technology in the 1960s revived the concept. Lasers allowed smaller, faster and cheaper readers or scanners. The modern bar code, or the Universal Product Code (UPC), was born and caught on just before the 1970s. As computing power became better, the power of UPC codes to help track and manage inventory improved exponentially. (Sinha, 1994)
  • 10. During the mid to late 1990s, retailers began implementing modern inventory management systems, made possible in large part by advances in computer and software technology. The systems work in a circular process, from purchase tracking to inventory monitoring to re- ordering and back around again. (Robinson, 1999) 2.4 Role of Inventory Management Food and supplies purchased, but not immediately used (inventory), often represent a significant portion of operational revenue.(Adams, 2005) One classic method of controlling food cost is to maintain inventory levels high enough to ensure menu items can be produced in the right quantity, but low enough to not have excess product sitting in storage. This is called inventory control. (Platten, 2008) Not producing enough of each menu item, whether due to lack of raw ingredients or inadequate forecasting, leads to customer disappointment and may violate program regulations. The goal is to have all choices available to students but not have excessive amounts leftover. Although the concept appears simple, it requires careful planning, standardized procedures, and monitoring to achieve desired results. (Sturn, 2008) In the past managers only needed to consider inventory control for their own facility in order to control costs. The age of supply chain management has made school nutrition operators more aware of the cost of inventory across the supply chain and the effect it has on end costs. (Peters, 2010) Producers, manufacturers, and distributors experience lower margins and waste when anticipated sales do not materialize resulting in excess inventories of product. This cost is passed along to the school district, which is why using predictable buying patterns will lower food costs to schools. (Velthoen, 2012) Other impacts of inventory management include: 2.4.1 Customer Satisfaction Good inventory control means that your time to fulfill orders stays low. If you use your inventory management system to analyze product sales, you can have your popular items in stock and ready to instantly fulfill any customer's order. You also know which special orders sell
  • 11. on occasion and have those products available in a limited quantity to keep your inventory costs down and to develop a positive reputation for quickly filling special orders. (Root III,2006) 2.4.2 Pricing When you have a well-designed inventory management system, you are able to reduce the amount of time that products sit on your shelves.(Hunt, 2007) When you don't carry extra inventory for extended periods of time, your inventory costs decrease. This is a savings that you can pass on to clients in the form of lowering product prices. (Ronson, 2009) 2.4.3 Maximizing Efficiency Another aspect of inventory management is efficient product handling. The design of the facility, especially the location and arrangement of storage areas can affect the ease with which products are delivered to production areas, as well as the security of inventory. Designing inventory forms to match the layout of storage areas can reduce the time needed to count inventory. (Jacobs, 2005) 2.4.4 Financial Management One of the most important goals of inventory management is improved financial control. The financial goal of inventory management is to ensure that the maximum value is generated from food and supply investments. (Hayes, 2011)In addition to the actual cost of acquiring inventory, costs are associated with transporting and storing inventory. These costs are called carrying costs and may include storage rental, utilities, insurance, cost of shrinkage, cost of obsolescence, cost of wages and benefits for labor to move and count stock, and opportunity cost - how much more you could have earned if the money were spent elsewhere. (Kimes, 1999) 2.4.5 Managing Quantities The correct quantity of inventory is the level at which sufficient product can be produced to meet customer demands no more, no less. (Wal, 2000)Some safety stock, a small cushion of inventory for unpredicted usage, is necessary to prevent sites from running out of food. For many products, this may mean setting a periodic automatic replacement level or a reorder point. Par levels are usually set for items served daily such as milk, common ingredients used in multiple recipes e.g.
  • 12. sugar, flour, spices. For entrees, fruits, vegetables, and bread products it is best to project serving quantities for the week’s menu. (Tsang, 2011) 2.4.6 Food Safety Food safety is a critical consideration in inventory management. It is very important to protect food inventories from both unintentional and intentional contamination. Proper placement of product in storage areas can ensure that raw products do not cross-contaminate food that will receive no further cooking as well as prevent accidental contamination from chemicals.(Cooper, 2002) 2.4.7 Menu Planning Menu planning is the underpinning of inventory control because the menu establishes what items are needed and how frequently they are going to be used. (Chambers, 2001). Effective menu planning requires considerable planning and skill to ensure that menus are cost effective, popular with customers, and meet nutrition and program guidelines. (Berry, 2005) It is unlikely that menus planned monthly by each site manager effectively control inventory. Using a central cycle menu controls inventory by making the items and quantity needed predictable. When the same items served together are repeated, a pattern emerges that, during each cycle, can be used to predict what customers will purchase. This allows managers to improve ordering forecasts. (Ballerini, 2007) 2.4.8 Forecasting and Ordering Forecasting and order can greatly affect inventory control. When forecasting is not accurate and products are ordered in excess,too much money is tied up in inventory, which reduces cash flow this then leads to more opportunity for spoilage, the likelihood of theft is increased, more products become obsolete, andthe quality of products deteriorate overtime.(Corbin, 2000) Ordering based on menus is another alternative. Order guides are designed to match weekly menus. Ordering by menu still requires that you establish the amount you would need to fulfill the menu plus a small extra amount for safety stock. You still consider the amount committed before the order arrives, and the amount currently on inventory. The only difference is the item would not be ordered until right before it is on the menu. (Morrison, 2012)
  • 13. 2.5 HOW TO IMPROVE INVENTORY ACCURACY IN A RESTAURANT Take inventory frequently. For some items it should be done daily, for others twice a week. At a minimum it needs to be completed before placing weekly orders. (Richards, 2002). Also clean out and organize your stock areas before taking inventory. Throw out items that have expired, move similar items to the same shelf and in general, tidy up. (Israelit, 2011) Take inventory after the restaurant has closed, or before it opens. You cannot take accurate inventory while goods are being sold. Whatever time you pick, stick with it. If you always take inventory on maybe on Tuesdays, but sometimes you do it at night and sometimes in the morning, there will be fluctuations in week to week results. (Baker, 2005) Take inventory before a new shipment arrives and then add the new stock to your counts. Do not attempt to take inventory while deliveries are being made. Items will end up being double- counted. (Roberts, 2008). You should also use Inventory Count Sheets. Have one for daily, one for eg. weekly and standardize the items included and the unit each item is tracked in. Changes in what items are tracked can cause large fluctuations in recorded inventory. (Jacobs, 2002) When taking inventory, make part of the practice ensuring that items are being used on a First In, First Out basis. (Millward, 2007) Older goods should be rotated to the front of shelves so they are used first. Additionally, try to keep the amount of items you have on hand as low as possible to reduce theft and spoilage. (Adams, 2005) Use two people to take inventory. They should count items separately and then compare results for anomalies. Pairing reduces errors and the temptation to manipulate results or pocket goods. (Gilbert, 2008). Use the same staff members to take inventory. They will not only get faster at it, but they will tend to be more consistent. (Doumenc, 2007) Standardize what your unit cost is. The price of many items (like ground beef) changes week to week. Use the latest price paid as the standard. It is the easiest to find and remember. (Amell, 2008.) As you standardize unit cost also ensure you maintain consistency. Using the same staff, taking inventory at the same time and counting the same items are some of the easiest ways to improve your accuracy. (Culnan, 2010)
  • 14. 2.6 Advantages & Disadvantages of an Inventory Management System As a business owner, you can choose to rely on traditional hand counting methods or institute some form of computerized inventory control. (Conrad, 2011). Both approaches have their advantages and disadvantages, and it is important to weigh the relative advantages carefully. 2.6.1 Speed and Efficiency An inventory management system makes everything from inputting information to taking inventory much easier. Doing a hand count of inventory can take long, but with an inventory management system, the same process can be done in a matter of hours. (McCarthy, 2011) 2.6.2 Document Generation Managers and workers can use the inventory management system to automatically generate all kinds of documents, from purchase orders and checks to invoices and account statements. (Osmanbegovic, 2010) Managers can also use the inventory management system to automatically order products when they run low.(Miller, 2005) 2.6.3 Timely Data When dealing with a manual system, the data is only as accurate and up to date as the last hand count. With an inventory management system, the management team can pull a report and instantly see how many units are on the floor, how many have sold and which products are selling the fastest. (Grant, 2013) 2.6.4 Reliance on Technology With a computerized inventory management system, the company is at the mercy of its technology. Outside factors like a power failure or the loss of Internet or network connectivity can render the system temporarily useless. (Rodgers, 2012) 2.6.5 Accuracy Issues
  • 15. A computerized system alone does not ensure accuracy, and the inventory data is only as good as the data entry that created it. Companies that plan to use a computerized inventory management system need to have a system in place to validate their data and check the numbers reported by the system. A select hand count or targeted audit may be necessary to ensure the integrity of the system.(Schmidt, 2010) 2.6.6 Risk of Fraud Any computerized system carries the risk of intrusion, and with an inventory management system comes the risk of fraud as well. A dishonest supplier could hack the system to receive payment for products never delivered, or a dishonest employee could redirect checks to themselves. (Catfolis, 2008) 2.7 Conclusion The aim of the essay was to have an inbound understanding of what inventory management is and its impact on restaurants on a technological scale. We were able to look at the history of inventory management, seeing that it dates back to the 1930s where team at Harvard University designed the first modern check-out system It used punch cards that corresponded with catalog items. A computer would read the punch cards and pass the information to the storeroom, which would then bring the item up front to the waiting customer. Because of the automated system, the machines could also generate billing records and manage inventory. (Toelle, 1996) We then were able to look at the different roles that inventory management plays. In the article the roles where broad so as to be able to touch on most if not all of the sectors that inventory management offers a role. In a specific point of view inventory management has its impacts on the administration, the organization, suppliers and distributers and the clients or customers. Most of its impacts as we so in the article are mostly positive as it has helped many organizations, restaurants included, to maximize their profits, avoid losses due to factors such as late delivery of
  • 16. stock, expiry of stock, overstocking, understocking, customer dissatisfaction due to lack of commodities etc. . (Root III,2006) We also looked on various methods of improving inventory management in our organizations. Methods such as to take inventory before a new shipment arrives and then add the new stock to your counts, clean out and organize your stock areas before taking inventory. Use two people to take inventory, use the same staff to take inventory. Were just but a few points raised in the area. We were able to realize that buy looking into this areas stock management in our organization will tremendously improve leading to higher profits, better stock arrangement and avoidance of theft from suppliers and employees etc. (Richards, 2002) With all the content covered in this article we can come to a conclusion that inventory management has made businesses have an easier time when it comes to their stock. It can also be seen that inventory management in the restaurant sector has brought nothing but positive factors to the industry. CHAPTER THREE RESEARCHMETHODOLOGY RESTAURANT INVENTORY MANAGEMENT SYSTEM (CASE STUDY OF SALEM UNIVERSITY RESTAURANT)
  • 17. 3.0 INTRODUCTION This chapter presents the research methodology that was used in conducting the study. It explains the research design, target population, sampling design, data collection and data analysis. 3.1 OVERVIEW The project proposes to develop a software that keeps track of inventory in restaurants and updates it according to daily sales. Each food item is linked to respective resources, ingredients, and as each product is sold the ingredients utilized in making that product are also utilized. These changes in inventory are kept track of through utilizing a database. The project also proposes to keep track of each and every ingredient by dynamically linking it to the product and as a result create a dependent relationship to that product. At a specific time period (typically the end of the week); if the inventory is below the threshold level, order forms to the specific suppliers are generated in order to restock the required items for the next week. The project also makes smart predictions on required inventory for the following week based upon the predicted climate and possible occasions or events that may influence near future sales. At the end of the week, the software takes into account all threshold levels, predictions, and other factors to generate an order form, which after being verified by the manager is sent out to the vendors. 3.2 FEASIBILITY STUDY This is the assessment of the practicality of a proposed project.
  • 18. It is the ability to complete a project successfully, taking into account legal, economic , technological, scheduling and other factors. It allows project managers to investigate the possible negative and positive outcomes of a project before investing too much time and money. 3.2.1 TECHNICAL FEASIBILITY It deals with the technological resources to undertake the project. It asks the question are the processes and procedures conductive to project success? This study was a major factor while conducting my research. I had to check and see if the firm had adequate technical and technological facilities to enable me to conduct the project. I had to check if the firm had the necessary equipment to conduct the project. 3.2.2 ECONOMIC FEASIBILITY It assesses the financial resources of the company in relation to the project. With regards to the economic capability of the firm will the project run smoothly without any hindrances. This is a major factor will conducting the project. I had to sit with the restaurant manager, Salem University Restaurant, to see if the restaurant had the necessary finances to conduct the project. We also had to analyse the impact of the project to the restaurant. We checked to see if the impacts would be more or generate a higher profit that the level of money spent to conduct the project. 3.2.3 LEGAL FEASIBILTY This looks into the legal implications of the project. I had to make sure that the project once completed will meet all legal and ethical polices set in place. 3.2.4 OPERATIONAL FEASIBILITY: This measures how well a company will be able to solve the problems and take advantages of opportunities that are presented during the course of the project.
  • 19. This entailed me looking into the impact the project would have on the restaurant. This are the operations that the restaurant would be able to perform thanks to the project. I had to ensure that the projects would be easy to use and operate. 3.2.5 SCHEDULE FEASIBILITY Does the company have the necessary time resources to undertake the project. Will the project be completed in due time. This is a major factor for the restaurant. With regards to the resources spent by the restaurant the project should be completed in due time to ensure it does not endure loss. 3.3 SYSTEM REQUIREMENTS 3.3.1 Functional requirements The System aims at providing an efficient interface that will assist the user in management of inventory, it shall also provide the user varied options for managing the inventory through various functions at hand. The ingredient levels are continuously monitored based on their usage and are checked for the threshold levels in the inventory and accordingly the user is alerted about low levels of certain ingredients. The design is such that the user does not have to manually update the inventory every time, the System does it for the user. The System calculates and predicts the amount of usage for specific set days that are pre-set by the user, it also alerts the user of an impending action to order ingredients before the specific day set by the user. Therefore the user never has to worry about manually calculating the estimated usage of the ingredients as the System does it for the user. The simple interface of the System has functions like adding a recipe, removing or updating the recipe. It also extends to functions such as adding a supplier for an ingredient, removing the vendor, checking threshold levels, processing orders, altering processed orders etc.
  • 20. 3.3.2 Non-functional requirements 3.3.2.1 Usability The system must be easy to use by both managers and chefs such that they do not need to read an extensive amount of manuals. The system must be quickly accessible by both managers and chefs. The system must be intuitive and simple in the way it displays all relevant data and relationships. The menus of the system must be easily navigable by the users with buttons that are easy to understand. 3.3.2.2 Reliability The System must give accurate inventory status to the user continuously. Any inaccuracies are taken care by the regular confirming of the actual levels with the levels displayed in the system. The System must successfully add any recipe, ingredients, vendors or special occasions given by the user and provide estimations and inventoy status in relevance with the newly updated entities. The system must provide a password enabled login to the user to avoid any foreign entity changing the data in the system. The system should provide the user updates on completion of requested processes and if the requested processes fail, it should provide the user the reason for the failure. The system should not update the data in any database for any failed processes. 3.3.2.3 Performance The system must not lag, because the workers using it don’t have down-time to wait for it to complete an action. The system must complete updating the databases, adding of recipe, ingredient, vendor and occasions successfully every time the user requests such a process. All the functions of the system must be available to the user every time the system is turned on.
  • 21. The calculations performed by the system must comply according to the norms set by the user and should not vary unless explicitly changed by the user. 3.3.2.4 Supportability The software is designed such that it works even on systems having the minimum configuration. The system is adaptable even if additional plugins or modules are added at a later point. The data can be exported to the manager so as to make the system more portable. 3.3.2.5 Packaging The system must be able to run on the Windows operating systems beginning with Windows XP, and must be able to run on current releases such as Windows 10. The software must incorporate a license key authentication process. The packaging must come with a manual that details the use of the system, and also the instructions on how to use the program. This manual may be included either in a booklet that comes with the software, or on the disc that the software itself is on. 3.3.2.6 Interfacing The system must offer an easy and simple way of viewing the current inventory. The system must be able to display the relationships between suppliers, ingredients, and recipes in an intuitive manner. 3.3.2.7 Legal The software must be licensed on an individual basis for smaller companies, as well as through a multi-license deal for larger corporations.
  • 22. 3.4 DATA COLLECTION Data collection was conducted by way of primary data collection from one of the following respondent; Mr Peter kamwaro, Salem University Restaurant, employees at the restaurant. The target respondents were the most competent to answer questions on inventory management. The data collection instrument used was: 3.4.1 Questionnaire It was distributed by drop and pick method, where the firm was accessible and by email for the others. This gave me first hand primary data which was reliable and accurate for analysis