-Module-4

Inventory
Management
Module 4
Learning Objectives
Define inventory management
Identify the kinds of inventory
Understand the dynamics of inventory
reports
Explain the techniques & importance of
inventory management
Inventory
Management
Inventory - a complete list of
items such as property, goods in
stock, or the contents of a
building.
Inventory Management - is the
act of keeping track of a
company’s stocked goods and
monitoring their weight,
dimensions, amounts, and
location.
Kinds of Inventory
Supplies sitting on shelves waiting to be used. These include office
supplies, cleaning supplies, computer supplies and accessories, and
supplies used for specific purposes, but not as part of your sales
process.
Product Inventory. This inventory can be products you purchase at
wholesale to sell to consumers at retail. It can also be component
parts or pieces of raw materials you use to make products to sell.
Inventory Report
MANUAL - LOGBOOK SYSTEM (BARCODES)

SPREADSHEETS
 Daily – display or portioned items
Types of
 Monthly – stocks
Inventory
 Logbook / Request Forms
Report  Food
 Non-Food
Analyzing your Inventory Report
Beginning Inventory – the account of items at the start of an accounting period.
Ending Inventory – the account of items left or goods on hand at the end of a reporting
period.
Spot Inventory - An unscheduled physical inventory that is taken to verify the existence or
nonexistence of a specific stock item.
Inventory Loss – an item that is not recorded as sale but missing in the stockroom or display
Shortage – if the revenue amount is less compared to the declared sales.
Overage - if the revenue amount is greater than the declared sales

Daily Inventory Report
Remarks: Loss, Shortage or
Overage
Item Unit Cost Beginning Beginning Ending Ending Sale Cash On Remarks
Inventory Inventory Inventory Inventory Hand
Amount Amount
San Mig Php 10 650 3 195 6 Php 390 1
Light 65/btl -loss
Sola Php 80/ 10 800 2 160 8 Php 600 Php 40
Raspberry btl -shortage
Iced Tea
Bo’s Iced Php 75/ 10 750 2 150 8 Php 700 Php 100
Coffee btl -overage
Daily Inventory Report
Remarks: Loss, Shortage or
Overage
Item Unit Cost Beginning Beginning Ending Ending Sale Cash On Remarks
Inventory Inventory Inventory Inventory Hand
Amount Amount
Chocolate Php 150/ 10 1500 3 450 6 900 1 loss
Cake Slice slice P150
Carrot Php 180/ 10 1800 4 720 6 1000 Shortage
Cake Slice slice P80
Bagel Php 80/ 10 800 5 400 5 500 Overage
slice P100
Pizza Slice Php 10 1600 6 960 4 400 Shortage
160/slice P240
Banoffee Php 10 1700 7 1190 3 700 Overage
Pie 170/slice P190
Monthly Inventory Report
Remarks: Loss
Item Unit Beginning Beginning Stockroo Display Ending Ending Release/ Remarks Amount
Cost Inventory Inventory m Inventory Inventory Request Loss
Amount Amount
CookingitOilCostPhp 10 Php 6 0 6 Php 4 ok

•Beginning
200 / btl Inventory
2000 1200
Ketchup•Stockroom
Php 10 Php 650 5 1 6 Php 390 1 loss 3 gallons
•Display65
/gallon
Php 195
Button •Ending
Php 50Inventory
/ 10 Php 500 5 0 5 Php 250 2 loss 3 cans
•Amount
Mushroom can Php 150
Evaporated Php 40 / 10 Php 400 2 0 2 Php80 5 Loss 3 cans

Milk can Php 120
Condensed Php 45 / 10 Php 450 3 0 3 Php135 4 Loss 3 cans

Milk can 135
Fresh Milk Php 10 Php 900 4 1 5 Php450 5 ok

90
/carton
Inventory Management Techniques
Set Par Levels

First-In First-Out (FIFO)
Regular Auditing
Accurate Forecasting
ABC ANALYSIS
 ABC analysis is an inventory
ABC management technique that
ANALYSIS determines the value of inventory
items based on their importance to
the business. It’s a type of inventory
categorization method in which inventory is
divided into three categories, A, B, and C, in
descending value.
ABC ANALYSIS
Items Importance Quantity Value Percentage
Percentage
A Highly Important 10 70
Items
B Moderately 20 20
Important Items
C Least Important 70 10
Items
Importance of Inventory Management
 Improves the accuracy of inventory orders

 Organized storage
 Increases efficiency and productivity
 Increase in customers satisfaction
 Minimize cost
Seatwork Activity: ABC Analysis
Instructions: Categorize each item into either Category A, B, or C based on its
importance to the restaurant. ½ yellow paper indicate name and section
Item Items
Category
1. Premium Wagyu 8. Soda (Soft Drinks) A ……
Steak 9. Fine /Vintage ……
2. Napkins Wines ……
3. Chicken Wings 10. Ketchup Packets
4. Gallons Salad 11. Stainless Pans B ……
Dressing 12. Paper Towels ……
5. Forks and Spoons 13. 1 kilo Packed ……
6. Lobster French Fries
7. Salt and Pepper 14. Fresh Vegetables C ……
Shakers 15. Espresso Machine ……
……
Assignment
• Please review for our next meeting
seatwork quiz
oDaily Inventory Report : Remarks: Loss, Shortage
or Overage
oMonthly Inventory Report : Remarks: Loss

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Inventory

MANUAL - LOGBOOK SYSTEM (BARCODES)

Shortage – if the revenue amount is less compared to the declared sales.

Overage - if the revenue amount is greater than the declared sales

CookingitOilCostPhp 10 Php 6 0 6 Php 4 ok

Evaporated Php 40 / 10 Php 400 2 0 2 Php80 5 Loss 3 cans

Condensed Php 45 / 10 Php 450 3 0 3 Php135 4 Loss 3 cans

Fresh Milk Php 10 Php 900 4 1 5 Php450 5 ok

Set Par Levels

 Improves the accuracy of inventory orders

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