This document discusses inventory management in the food and beverage industry. It describes different types of inventory including physical, perpetual, and ABC systems. The purpose of inventory is to verify accuracy, unit prices, and identify any adjustments. Wastage, spoilage, portion control, and quality control are also discussed as important aspects of inventory management. Maintaining proper inventory levels, minimizing waste, and ensuring quality and safety are key to controlling food costs and satisfying customers.

1. Presented by:
PROF. MARIANNE T. EVANGELISTA, MSHRM

2. METHOD OF EXECUTION
PART 05
INVENTORY

3. INVENTORY
• An itemized catalog or
list of tangible goods or
property, or the
intangible attributes or
qualities.
• Inventory represents one
of the most important
assets that most
businesses possess,
because the turnover of
inventory represents one
of the primary sources of
revenue generation and
subsequent earnings for
the company's
shareholders/owners.

4. TYPES OF INVENTORY
• PHYSICAL INVENTORY – must have a
preprinted lists of all the items in the
inventory, with spaces for entering the
correct counts of each item. (Physical
Count)
• PERPETUAL INVENTORY – is a continuous
reporting of items on hand. When
merchandize is received , sold, issued or
transferred, the system record is adjusted
to show the new quantity on hand
• ABC SYSTEM – attempts to combine both the
physical and perpetual inventory systems.
It separates inventory items into three
main categories

5. PURPOSE OF INVENTORY
AND RECONCILIATION
• Verify accuracy of requisitions
• Verify ending inventory extension methods
to ensure consistency. This is discussed
more in detail below.
• Verify unit prices on requisitions
compared to those on the actual inventory.
• Alert the food and beverage manager of any
adjustments to be made.
• Review all the paperwork and calculations
related to products that exhibit large
variances. Any errors found should be
corrected accordingly.
• Review and revise security measures as
needed.

6. WASTAGE
• The wastage, at all
levels, i.e. Portioning,
Cooking, Storing, etc.
should be as minimum
as possible.
• The wastage of food
should be avoided.
• All trimmings of
vegetables, bones, and
other raw material
wastes should be used
to cook stock, soups,
gravies, sauces, etc.

7. SPOILAGE
• The cooks must
ensure that
there should
be as far as
possible no
spoilage of
food in the
kitchen.

8. PORTION CONTROL
• The chef must
ensure that dish is
as per the standard
potion, as both the
larger portion and
smaller portion is
harmful to the
hotel / restaurant.
• A large portion will
increase the food
cost and a small
portion will
dissatisfy the
guest.

9. QUALITY CONTROL
• Quality covers accuracy,
thoroughness, and conformity
to the standard procedures.
• Quality control include:
- Quality control for
Productivity and Speed
- Quality control for Cost
- Quality control for
Safety
- Quality control for
Cleanliness and Sanitation
- Quality control for Staff
and Service

10. End of
Chapter 02