APPLIED MATHEMATIC

FOR HOSPITALITY

CASE 2 : INVENTORY
 MENU OF
THE DAY

1) What is an inventory ?
2) How inventory help you control use of food
3) Mathematic skills required for Inventory
4) Practice calculating Theory Stock

5) Practice calculating Real Stock

 LEARNING CHECK LIST

STANDARDIZED RECIPES

- Why restaurant use Standardized recipe?

- Calculate Estimated Cost

- Calculate Real Cost

- Convert Weight

- Convert Liquid

- What is an invoice

- Calculate Net Price

- What is Revenue

- What is profit

- What is Gross Margin

 1) WHAT IS AN INVENTORY ?

An inventory is :

- A process of checking the total quantity of products (food, beverage) that a

company has in stock.

Why are hotels doing inventory ?

- Help in optimizing ordering (avoid ordering extra)

- Monitor if the stock is managed well (the smaller the stock, the better)
- Monitor if the food ordered is used (find is the chef order too much)
- Monitor if some food is being stolen, over wasted
 2) HOW INVENTORY HELP YOU TO CONTROL USE OF FOOD

During an inventory, the store keeper will find and compare the:
ESTIMATED STOCK VS REAL STOCK

ESTIMATED
REAL STOCK
STOCK

OBTAINED 100% BY OBTAINED WITH

CALCULATION FACT

Using : Counting/measuring
-Invoice the quantity of
-Food Request product in the store

The estimated stock alone does not help, it must be compared with :
REAL STOCK

Should Estimated stock be equal to real stock?

Can estimated stock be equal to real stock?

 3) MATHEMATIC SKILLS REQUIRED FOR INVENTORY

A standardized Recipe does not use heavy calculation. It is basic one such as :

-Addition
-Subtraction
-Multiplication
-Division
-Conversion
-Add percentage
 4) PRACTICE CALCULATING ESTIMATED STOCK

Using the document given to you, you must :

- Calculate the total ESTIMATED Stock in Volume for 21 November inventory

-Calculate the total ESTIMATED Stock in value 21 November inventory

What documents do you need ? :

 + - =

REAL STOCK : ESTIMATED STOCK

INVOICE FOOD REQUEST
31 October 2013 21 November 2013

It is the exact amount Some food is removed

Some food is added in It is the amount of
of food you have in from the fridge and
your fridge and store food you should have
your fridge and dry store to be used by
room. in your stock
store the chef.

Can the
How to find the What is the What is the Estimated Stock
Real Stock ? impact on stock? impact on stock? be trusted ?

No, it is only a
You need to go in the
You have purchased calculation. The hotel
store room and count You are using food, so
food, so your stock need to do the real
all the products you the stock decrease
increase stock on 21 November
have
and compare.
 5) PRACTICE CALCULATING REAL STOCK

Using the document given to you, you must :

- Calculate the total REAL Stock in Volume for 21 November inventory

- Calculate the GAP between Estimated Stock and Real Stock in volume

- Calculate the total REAL Stock in Value 21 November inventory

What documents do you need ? :

 ESTIMATED STOCK 21 November
REAL STOCK 21 November 2013
2013

It is the amount of food you should have It is the amount of food you really have in
in your stock your store

In Volume In Volume
If the estimated
ESTIMATED
stock is higher than
UNIT CLOSING REAL STOCK GAP
the real stock, is it a
STOCK good sign ?
French Bean gm 900 1000 100
VEGETABLES Romaine lettuce gm 0 200 200
Cherry Tomato gm 645 95 -550

FRUITS Lemon gm 650 700 50

Canned Tuna can 1 1 0

Olive Oil ml 4000 2000 -2000 If the estimated
Garlic gm 745 800 55 stock is higher than
DRY STORE Mustard Pot 1 1 0 the real stock, is it a
Sandwich Loaf Packet 1 0 -1 good sign ?
Salt gm 3300 300 -3000
Pepper gm 400 100 -300

Milk ml 600 200 -400 If the estimated

Cream ml 1000 400 -600 stock is equal to
DAIRY PRODUCT
Butter gm 600 600 0 the real stock, is it
Cheese gm 0 0 0 a good sign ?
 Using the document given to you, you must :

- Calculate the GAP between Estimated Stock and Real Stock in value

- Calculate the total LOSS in Value 21 November inventory