...INVENTORY MANAGEMENT SYSTEM FOR FOOD PROCESSING COMPANIES Program BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY MARICEL M. BALANGUE ANGEL STORM E. CAINOY LARA MAY C. CELESTINO CHRISTIAN OLIVER J.GALLARDO ALSIE B.LANDICHO Proponents MR.JAYSONR.HERMOGENES Adviser 1. Project Title INVENTORY MANAGEMENT SYSTEM FOR FOOD PROCESSING COMPANIES 2. Project Overview and Problem Statement In business world, inventory is one of the most expensive assets of many companies. Good inventory management being crucial that have been recognized by operation managers around the globe. The project entitled Inventory Management for Food Processing Companies is a software application maintaining the records related to food stocks, items and products management. This can be used to track the inventory of a food processing company. In addition, since theft, errors and miscalculations can occur occasionally, the system provides solution for confirming the business inventory and for correcting stock quantity. 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. Excess inventory can result in increased waste from foods that spoil, are pilfered, or simply wasted due to overproduction or obsolescence. When inventory is high, it is harder to keep track of what products are on hand, more storage space...
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...issues one in particular is daily excess of inventory. A large portion of Kudlers inventory is perishable as a result there is a 12% of excess of inventory discarded or given to charity every two to three days. The purpose of this paper is to create a problem statement based on the problem solving process identified in the Problem Solving-Based Scenarios regarding the issue at Kudler Fine Foods and to establish an improved vision for Kathy to growth the business. (University of Phoenix, 2010) Problem Statement and End Vision for Kudler Fine Foods Kathy Kudler’s passion to for gourmet cooking and her frustration to find the best ingredients locally drove her to establish Kudler Fine Foods. Kudler Fine Foods is an upscale specialty food store established in 1998 has three locations at La Jolla, Encinitas, and Del Mar in the San Diego Metropolitan area (University of Phoenix, 2010). Kathy’s vision was to establish a place that would supply a wide selection of the freshest ingredients for gourmet cooking with the convenience of a one-stop shopping experience. The categories of gourmet foods offered by Kudler Fine Foods are mainly perishable items such as bakery, produce, cheese and dairy, wine, and catering. Although the company is not faced with any direct competition based on their wide selection of food products and locations, the business is based upon perishable goods means there is a high turnover of their daily inventory....
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...the kind of scenario described in the Kudler Fine Foods 2003 Strategic Plan. Only one of the three stores in the Kudler Fine Foods franchise is performing well financially (University of Phoenix, 2003). Additionally, approximately 12% of the perishable merchandise is either thrown away or donated to homeless shelters two to three times per week (University of Phoenix, 2003). While donating food to homeless shelters supports the community and provides a good basis for social responsibility, Kudler Fine Foods cannot continue to maintain a rate of donations that is detrimental to the bottom line of the business profits. Continual hits to the bottom line will ultimately lead to closing the business. Kudler Fine Foods needs to determine a method that reduces product waste and maximizes profits. The Kudler Fine Foods 2003 Strategic Plan (University of Phoenix, 2003) reveals many issues that contribute to product waste and profit losses however this paper will only discuss two issues. The first issue is there are too many product types offered by the store. The second issue is there are too many varieties within these product types provided on an ongoing basis. When a store’s inventory is too large to permit selling the perishable items before these products degrade to an unacceptable quality level, waste is produced. The issue is that throwing away food is equivalent to throwing dollar bills in the trash. Note...
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...problem and the end vision if management realizes the opportunities. The owner of KFF has the majority of the responsibilities and a product line in which a high percentage of the perishable goods rotate out of inventory every two to three days creating a decrease in net income. Once the problem is defined, KFF must identify the defects causing the problem. First, one must look for opportunities within the owners’ various responsibilities. The owner, Kathy, is the main management person handling the planning, organizing, leading, and controlling people for three stores. She handles purchasing and inventory. In addition, she is the accountant and financial planner. An important key opportunity is that the management team is small and lacks the right expertise. No contingency plan is in place for Kathy’s responsibilities. If she is out, none of the inventory orders take place or any major business decisions occur. A potential risk is the business could go under because there is no one to handle those responsibilities. Because she is doing so much, opportunities are overseen. She does not have the time to research and analyze to assist in being proactive for future endeavors. She is always in react mode. Several opportunities exist to explore the 12% of perishable goods removed from inventory every two to three business days. The inventory process is manual and must be automated to create efficiencies. Need to determine what perishable goods are not selling and is...
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...Debits, Credits, and Inventory Costs Part 1: Double-Accounting Method of Recording When using the double-accounting system, also known as the double-entry method, each transaction on the General Journal and associated account activity catalog must be recorded at least into two accounts. The debit account, often on the left, is denoted by ‘Dr’ while the credit account, often on the right side, is denoted by ‘Cr’. The entries are made depending on the account type, which may be an asset, a liability, an expense account etcetera, or depending on whether the transaction increases the account or decreases it (Lee, 1977). For instance, any transaction noted on the debit side would add to the assets account. Alternatively, a transaction would be entered on the debit side if it lowers the liabilities or the equity. On the other hand, all transactions that lower the assets account would be posted on the credit side. Any transaction that adds to the liabilities or the equity would similarly be entered on the credit side of the General Journal. Debits and credits have effects on particular accounts. A debit entry can increase either an asset account or an expense account, or decrease equity account or a liability account. A credit entry, on the other hand, either increases the liability account or the equity account, or conversely decreases the asset account or the expense account. Therefore, when assets rise, they are recorded in the debit account. However...
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...STRATEGIC MANAGEMENT ASSIGNMENT 4 1.0. Supply Chain Management Intense competition in today’s global marketplaces, products with shorter life cycles, andsuperior expectations of customers have compelled business entities to invest in, and focus ampleattention on, their supply chains. Supply chain management has already become corecompetencies of various business enterprises such as: Apple, Intel, Samsung, P&G, Wal-Mart, Nike, Toyota and Audi which gives them the competitive advantage over their rivals. (Gartner,2012)The concept of supply chain management has become ever popular in today’s business world asit exists in both service and manufacturing organizations. It can be defined as: “ A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, sothat merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements. ” (Edmund P. & Kim W., 2013)Supply chain is basically an integration of independent organizations associated together as agroup through products and services where group associates jointly or separately add value on inorder to deliver them to end customers and meet their the needs. It consists of numerouselements that are connected together through the movement of products along it. Customer, planning, purchasing, inventory, production and transportation are the components...
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...Assess strategies that management may use to respond to influences on operations 1. Executive summary: Operations management is the planning, organising, coordinating and controlling the transformation of inputs to outputs to maximize profitability, while meeting the requirement of customers and maximising quality of the good and service. Operating since 1983, Bob and Pete’s 100% Yum is a family owned, authentic bakery wholesaler. Operating for 25 years, Simon Johnson is a wholesaler of luxury and high end foods, valuing the experience and quality of foods. Both in the food industry, the businesses respond to these influences through the variety of similar and different strategies. The operations process is influenced by technology, quality expectations and globalisation. Similarly, B&P and SJ respond to these influences by the strategies of using leading edge and established technology, inventory management quality management outsourcing and the design and development of new products. 2. Technology Technology is the design, construction and application of innovative devices, methods and machinery upon the operations process. If technology is responded to efficiently, businesses applying efficient strategies to improve efficiency and quality, as machines make manufacturing more accurate. SJ strategically use leading edge technology, which is the most advanced or innovative technology at any point in time. For example, SJ use new technologies of temperature controlled...
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...proceeded to open the second location in Del Mar in 2000, and expanded to Encinitas in 2003. Multiple issues are indentified in KFF strategic plan. First, Kathy continues to take on almost all of the management responsibilities. She has hired a store manager and assistant manager for each location but doesn’t allow them to work fully in that capacity. Her management style has not changed though she has continued to expand her business. Second, a payroll that consists of high paying employees such as butchers, bakers, and wine stewards for each location. The last issue I will address is, 12% of perishable food is either donated or thrown out each month resulting in a substantial loss to KFF month. Kathy Kudler is the founder of KFF. She continues to handle all of the financial responsibilities for all stores’s and orders all inventory. She works seven days a week and will occasionally even stock shelves and run the cash register. Because she has hired a manager and assistant manager for each location she should delegate the managerial duties to the store’s managers. Each manager should be responsible for the payroll at his or her location. The manager should be responsible to hire and terminate employment as well. The managers at each location should also be knowledgeable of their inventory what needs to be...
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...OPERATIONS MANAGEMENT PROJECT REPORT Introduction: Reliance Fresh is a chain of retail stores owned by Reliance Industries, headed by Mukesh Ambani. It was established in 2006, and now has more than 1000 outlets across the country. They sell a wide range of items including fruits, vegetables, groceries, juice, dairy products, FMCG goods and other staples. A typical Reliance Fresh Store has an area of 3000 – 4000 sq. ft. and caters to customers living within 2 – 3 km around each store. Reliance plans to invest over Rs. 250 billion over next 4 years for expanding its retail division. Reliance Fresh provides direct employment to over 5 lakh young Indians and indirect job opportunities to a million people, according to the company. With its core growth strategy of backward integration, Reliance Fresh has made rapid progress towards creating and sustaining an entire value chain right from the farmers to the end consumers. Reliance Fresh has announced that it will minimize its exposure to fruit and vegetable business and position itself as a complete super market which focuses on categories like food, FMCG, stationeries and other products. It has a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shop keepers and consumers. STRUCTURE Organizational Aspects: * 12 customer service associates are rotated periodically for various jobs like billing, stacking and customer service so that they...
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.............................................. 14 Personal Reflection.............................................................................. 15 Conclusion............................................................................................ 16 Reference.............................................................................................. 17-18 Introduction Logistics is the art and science of management, engineering and technical activities concerned with requirements, design and supplying, maintaining resources to support objectives, plans and operation. [Society of logistics engineers (SOLE) 1974] INBOUND LOGISTICS Inbound side of logistics includes procurement or purchasing inventory management activities. It is important to note that the inbound and outbound logistics systems share common activities or process, since both involve decisions related to transportation, warehousing, materials handling, inventory management and control, and packaging, as well as some other activities. With the warehouse management system, company can control the goods receipt and goods issue processes at a physical level. Goods receipts are possible from...
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...organization with a limited flow of goods. More precisely as food and beverages are purchased and owned by the restaurant it can be classified as a service organization with a limited flow of own goods. 2. a. What risks inherent to this type of organization apply to GoodFood? Risks inherent to this type of organization include: - Insufficient quality or amount of ingredients which could lead to unsatisfied customers and loss of reputation and/or revenues - Most ingredients are perishable thus loss of value of ingredients occur if they are not used on time - Customers do not receive what they ordered (misalignment between customer orders and meals prepared) and therefore are dissatisfied and meals have to be returned and prepared again which means loss of assets - Incomplete documentation of waiters (when orders are not documented thus sales are not recognized) can lead to loss of assets and revenues - Incomplete cash collection by waiters lead to loss of assets Accounting Process Management 2 - 6 - - Theft of ingredients or cash by personnel leading to loss of assets - Since sales transactions are relatively simple personnel usually performs more than one duty (servers take orders, serve meals, and collect cash) which gives opportunity to fraud b. What risks are specific for GoodFood? Besides the above mentioned general risks for service organizations with a limited flow of own goods, some specific risks apply to GoodFood. - Royal accepts payments on account with...
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...outside, regularly used supplier D) outside, new supplier 5) A deduction from a bill made by a retailer due to such infractions as late shipping or improper labeling is called a ________. A) penalty B) liquidated damage C) chargeback D) holdback 6) A purchaser of fine antiques is most likely to evaluate merchandise through ________. A) description B) sampling C) inspection D) testing by an independent agency 7) An example of items which should be evaluated by a retailer by inspection are ________. A) college textbooks B) antique furniture C) color televisions D) file cabinets 8) Description buying is most appropriate for ________. A) breakable, perishable, or expensive items B) standardized, nonbreakable, and nonperishable merchandise C) jewelry and art works D) nonstandardized, breakable, and perishable merchandise 9) A new or special order usually results in a ________. A) negotiated...
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...small town in western New York. Lew-mark Baking company operates in New York and New Jersey. It employs around 200 workers in a mainly blue collar, informal atmosphere. In my paper, I will answer several questions about operations for this company The Cookie Production Process When describing the cookie production process for Lew-mark baking, it is best described as using the batch processing system. The batch processing system can best be described as the execution of a series of programs ("jobs") on a computer without human interaction. “Batch Processing is used when a moderate value of goods or services is desired, and it can handle a moderate variety of products and services” (Stevenson 2009, P 239). This method helps with quantity management because Lew mark only makes cookies according to demand. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output? One obvious way the company is increasing productivity is that it only makes cookies according to the demand. What ever order it receives from its distributor is what is made in the factory. This ensures that productivity is centered on the demand and time is not wasted baking products that might or might not sell. This is return, makes productivity quicker and more efficient. As mentioned above, the Batch processing system is a huge contributor to increasing productivity. Having two ovens also helps in speeding up productivity. Lengthen the ovens...
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... She has been able to operate without calling up any outside investors. Before she found the company she was a VP of a large contractor. First, one of Kudler Fine Foods issues is that it has too many weaknesses. They need to have a higher percentage of perishable goods rotated daily. They should rotate their perishable goods daily. Too many perishable goods are being thrown away and given to charities. The Kudler Fine Foods Company needs to stop allowing the employees to take home perishable goods because the store is losing money doing that. The company needs to cut down on the pay so they can be able to higher qualified people to work for the company. Another problem in this company is that they only have one person, Kathy, to handle everything in the company. She is the only one who handles replacement inventory and business issues. They need to higher an assistant for her so when she is sick or on vacation things can be handled while she is gone. Keeping the Del Mar location opened is hurting their business. They need to close that store down and put it in a bigger town so they can do better business. Like stated before the company needs to higher Kathy some help so that she can visit the stores, maintain inventory, and make orders. Furthermore, being that Kudler Fine Foods has high payroll it makes it difficult for them to higher backups for all the positions they have in the company. They lack training in the store and it does not allow them to be able to fill someone...
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...GoodFood GoodFood is an organization that runs two restaurants located in the same building: Royal, with 100 seats, and Premier, with 400 seats. These restaurants each have a clearly separated entrance, with reception, wardrobe, etc. Each restaurant has its own manager, who is responsible for running the restaurant and its financial results. Under the leadership of the general manager, the following departments are in place: - Purchasing (4 employees) - Storeroom and cold store (6 employees) - Central Kitchen (25 employees) - Accounting department, including computer department (6 employees) - Financial department, including Central Cash Desk (4 employees) - Household service (cleaning, maintenance, etc.) Royal Royal is an exclusive à la carte restaurant, which has recently been awarded a Michelin star. The menu changes weekly and depends on the season. To dine at Royal, both individual guests and groups need to book in advance. Groups can also hire the entire restaurant. Depending on the size of the group, the time, and the day of the week, groups can get a discount, or may need to pay a surcharge on the regular menu prices. Groups that hire the entire restaurant always need to pay a surcharge. Royal accepts cash payments, credit card payments, and payments on account. For payments on account the payment term is 30 days. Royal’s attendants are employed on a permanent basis (25 employees in total). Premier Premier is a restaurant where one...
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