Typical Storage Management Procedures

Typical Storage Management Procedures15YOU SHOULD BE ABLE TO:Explain the objectives of storage.Describe the factors needed to achieve storage objectives.Illustrate the process of managing inventory and storage facilities.Generate a stock requisition and describe its use.List important storage-management practices that small hospitality operators should follow.OBJECTIVES OF STORAGE MANAGEMENTStorage management attempts to prevent loss of merchandise due to TheftPilferageSpoilageACHIEVING STORAGE OBJECTIVESAdequate space5 square feet per dining seat (on average)15 square feet per hotel room (on average)10-12 percent of the total property (on average)ACHIEVING STORAGE OBJECTIVES (CONT.)Adequate temperature and humidityMeat, poultry, fish, processed crustaceans, dairy, reduced oxygen packaged foods, some foods prepared in-house: 41ºF or lowerLive shellfish, eggs: 45ºF or lowerFruits and vegetables: 41ºF to 70ºFDry and canned food: 50ºF to 70ºFFreezer storage: 0ºF to 10ºFACHIEVING STORAGE OBJECTIVES (CONT.)Adequate equipmentShelving/racksTrucksCovered containersProximityAccess to maintenanceACHIEVING STORAGE OBJECTIVES (CONT.)Proper securityCompetent personnelSufficient timeStoreroom regulationsWho is allowed to enterProcedures for obtaining itemsMANAGING STORAGE FACILITIESInventory classification and organizationUsage ratesEmergency ordersSurplusesStock disposalStock transfersMANAGING STORAGE FACILITIES(CONT.)Perpetual inventoryPhysical inventoryProduct cost calculationsRestricted access to storage facilitiesStock requisitionsMANAGING STORAGE FACILITIES(CONT.)Inventory ShortcutsCount everything in the warehouse, add predetermined percentage for amount in processCount only full-case equivalentsCombine ordering with inventory takingUse a tape recorder to recite counts; transcribe the informationUse a handheld computer device to encode inventoriesMANAGING STORAGE FACILITIES(CONT.)Exercising control over the stockAllow only a few persons to withdraw itemsMaintain small stock so pilferage is more noticeableUse small working storerooms and keep large storerooms lockedUse stock requisition systemIssue stock only at certain times during the dayIssue exact amounts of ingredients for one day or one shiftVALUE ANALYSIS: STORAGE-MANAGEMENTTheoretically can capture 2% savingsSmall operations have optionsUse one-stop shopping Owner-manager or assistant receives and inspects all incoming merchandise Send expensive items to the main storage area and less expensive items to productionOwner-manager issues par stocks of expensive items at shift beginningsLock main storage facilitiesVALUE ANALYSIS: STORAGE-MANAGEMENT (CONT.)Small operations have options (cont.)Lock main storage facilitiesOwner-manager retrieves expensive items as neededOwner-manager restocks unused expensive itemsConduct critical-item inventory