1. Boot Camp 3 Inventory Management

2. Objectives Define inventory management and the role of menu planning in inventory management Implement delivery policies and procedures Implement inventory control procedures Properly equip and organize storage area for inventory management

3. What is Inventory Management? Inventory –A complete list of items such as property, goods in stock, or the contents of a kitchen. Management –Judicious use of means to accomplish an end.

4. Menu Planning Menu planning is the underpinning of inventory control The menu establishes what items are needed and how frequently they are going to be used –Use cycle menus –Plan the menu before procurement –Improve manager forecasting –Use POS and production records to look at participation trends

5. Delivery Policies and Procedures Vendor delivery requirements –Purchase from approved vendors Products received following written policies and procedures –Products received match delivery requirements and written specs Unacceptable merchandise Authorized substitutions Document delivery problems Review and update as needed

6. Inventory Control Procedures PAR values –Used to establish a weekly quantity of any item to have on hand –Use the POS

7. Pizza Meal PAR Value Example Daily use –272 slices of pizza – from POS –Two cases of crusts –Two #10 cans of sauce –34 pounds of cheese Weekly PAR for ordering –Daily numbers multiplied by serving days per week –10 cases of crusts –Two cases of sauce 10 #10 cans –Nine cases of cheese 170 lbs. of cheese 20 lbs. per case

8. Inventory Control Procedures Automated and manual inventory systems –Sequencing the storage areas Dry storage Chemical storage Refrigerator Freezer Kitchen Serving lines POS stations

9. Inventory Control Procedures Dry storage

10. Inventory Control Procedures (Cont’d.) Monitor site inventory levels –Monitored using Days-On-Hand (DOH) –DOH is influenced by: The frequency of deliveries The operation’s size, style of service, and menu mix Available storage area The tolerance for menu substitutions Seasonal or local availability of product Special district requests USDA Donated Foods

11. Inventory Control Procedures (Cont’d.) How do you calculate DOH? Step 1 Beginning inventory $_______ + food purchased/USDA $_______ - ending inventory $_______ = food cost $_______ Step 2 Food Cost $________÷ ___ serving days = daily food cost $________________ Step 3 Ending inventory $_________________ ÷ daily food cost $_________________ = days of inventory on hand _________ Step 4 Number of serving days ______ ÷ days of inventory on hand ______ = inventory turnover ______

12. Inventory Control Procedures (Cont’d.) Product codes and lot numbers

13. Inventory Control Procedures (Cont’d.) Monthly physical inventory –Actual count of food and supplies –Consistently taken on last day of each month –Inventory all storage areas: dry storage, refrigerators, freezers, kitchen, and serving lines Inventory value measures the full operational month –Take inventory a day earlier, your food cost appears lower because you’ll have an extra day of meals sold –A day later, your food cost will be higher because it appears that you used more food to generate the meal sold during the operating month Recommended that two people take inventory

14. Inventory Control Procedures (Cont’d.) Food is accurately labeled and dated –Dating format –mm/dd/yy, 05/10/16 First In First Out (FIFO)

15. Receiving and Storage Areas Thermometers and proper equipment, such as carts, are available

16. Receiving and Storage Areas (Cont’d.) Product specifications, including product codes, are available

17. Receiving and Storage Areas (Cont’d.) Written receiving procedures are available, and school nutrition personnel have been trained in their use

18. Receiving and Storage Areas (Cont’d.) Storage areas are temperature controlled.

19. Receiving and Storage Areas (Cont’d.) Storage areas are properly maintained and well-ventilated.

20. Receiving and Storage Areas (Cont’d.) Storage areas are adequately secured.

21. Receiving and Storage Areas (Cont’d.) Proper placement in storage areas

22. Receiving and Storage Areas (Cont’d.) Storing fresh produce

23. Receiving and Storage Areas (Cont’d.) Control food cost by reducing waste –Purchasing too much –Inventory unknown –No FIFO –Spoilage

24. Wrap Up Activity What can you take back to your school? –Inventory management best practices activity “It has been said, what we know and what we believe is of little consequence. It is what we do that is important…” - Frank Yiannas, author of Food Safety Culture, Creating a Behavior- Based Food Safety Management System.

25. Sources and Resources The Institute of Child Nutrition –Inventory Management and Tracking –http://www.theicn.org/ResourceOverview.aspx?ID=431http://www.theicn.org/ResourceOverview.aspx?ID=431 School Nutrition Association –Keys to Excellence: Standards of Practice for Nutrition Integrity –https://schoolnutrition.org/keys/https://schoolnutrition.org/keys/

26. Mission Statement Develop extraordinary school nutrition professionals and provide strategies to increase consumption of healthy school meals.

27. Districts and schools in Tennessee will exemplify excellence and equity such that all students are equipped with the knowledge and skills to successfully embark on their chosen path in life. Excellence | Optimism | Judgment | Courage | Teamwork

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