Storing and Inventory

Control
 Storage Control
Aims and Objective of Storing control
Job Description of Store personal
Type of Stores
Condition of Equipment
Arrangement of Food
Location of Storage Facilities
Security Issues
Issuing Control
Records Maintain
 Inventory Control
Introduction to Inventory
Types of Inventory
Inventory Control Method
General Problem in Inventory Control
Storing Control
Aims & Objective of Storing Control
Define as the process of establishing standard
and procedure for storing.
The term store, storehouse or Warehouse
refers to a building where materials are kept.
An Organization have various types of sores
as raw material store, processed store or semi
finished material store where goods kept in
huge shelve.
 Objective of Store control
1. To provide maintenance material, spare parts
and general store as required.
2. To receive and Dispatch finished Goods.
3. To make available and Balanced flow of Raw
Material.
4. To make a proper control over Threads
5. Proper Inventory of store ensuring adequate
staff in Hand.
6. To accept and store scrap and other discard
material as they arise and also arrange for
Disposal.
STAFFING OF STORE
ROOM
Store Manager

Assistant Store Manager

Store Supervisor

Computer Operator/Clerk

Store Man/Store Keeper

Contract Workers
 Responsibilities of Store
Personnel
1) Identification of all material stored.
2) Receipt of incoming material
3) Inspection of all receipt from renders and sub
Contractors.
4) Storage and Preservation
5) Material Handling and Packing.
6) Issue of material to users within the
organization.
7) Processing of Customer Orders.
8) Dispatch of Finished Goods.
9) Maintenance of stock Records
10) Store Accounting
11) Inventory Control
12) Stock Taking
13) Submission of Reports to Management.
 Job Description of Store Personal
Reports To : Store Supervisor

1. Keeping proper record of transactions made

for receiving and issuing of Goods.
2. Ensure proper storing of Goods.
3. Ensure proper supply of Goods Receiving.
4. Assign Location for storage of different
commodities as perishable and non perishable
items.
 FACILITIES AND
EQUIPMENTS
Equipments
 Commercial
weighing scale
 Toed boxes
 Trolley
 Racks
 Cage
FACILITIES
Racks
Exhaust Fans / Ceiling
Fans
Refrigerators
Air Conditioners
Temperature Recorders
Generators

Mouse Traps
Stock Registers
Issue Registers
Indent Forms
Type writers
/Computer with
Printer
Claim Forms
 STORAGE AND
SYSTEM
Storage according to the food categories

Non-perishable or stable
foods
 Semi perishable foods
 Perishable foods
 Non-perishable or stable foods

These foods do not spoil unless they

are handled carelessly. They should
be stored in a cool, dry place. They
can be stored for one year. They
should be picked and cleaned before
storage.
Non –perishable foods include sugar,
hydrogenated fat, vegetable oil,
ghee, whole grains, dals, whole nuts,
Non-perishable or stable foods
 Semi perishable foods
These foods do not spoil for a fairy long
time if stored properly. They are less
likely to decay due to micro-biological
contamination than other perishable
foods. Natural chemical breakdown is
also slower in such foods. If they are
stored in a cool place with adequate
ventilation they have a moderately long
shelf life.
Semi perishable foods include
processed cereals, pulses, and their
products like flour, Bengal gram flour,
 Perishable foods
This is the largest of the three
group and include most of the
food items we consume
everyday, such as a milk and
milk product, eggs, poultry,
meat, fish most fruits and
vegetables such as bananas,
pineapple, papaya, green leafy
vegetables etc.
Requirements concerning storage of
materials/ products with respect to the
following

1. Space, design, security and

cleanliness
2. Storage of quarantine stocks
3. Storage of hazardous substances
4. Conditions of storage area (e.g.
temperature & relative humidity)
5. Receiving of incoming materials
6. Stock control (e.g. FIFO principle,
proper labelling on the container)
 Minimum/Maximum Purchase Order
System
Minimum inventory
levels: Safety level—
minimum quantity below which
inventory items should not fall
Maximum inventory levels:
Highest quantity above which
inventory items should not rise
Usage rates: number of
purchase units used per order
Lead-time quantity :
Anticipated number of
purchase units taken from
inventory between the time
an order is placed and the
time it is delivered
Order point : Number of
purchase units in stock when
an order is placed
 Types of Stores
1) Raw Material Store
2) Production Store
3) General Store
4) Tools Store
5) Refrigerated Store
6) Dry Store
7) Sundries Store
 Raw Material store
This is where raw materials used in the
factory are stored usually this kind of store
located inside the factory where the goods can
be easily issue according to Demand.

Production Store
Production of raw material takes place
which require a number of material generally
called consumable as eye shield, gloves etc.
General store: Various kind of
Miscellaneous items as
point,brushes,cleaning material, wood and
spirit are kept here. in some cases where
there is no production store it take place.
Tools Store: All kind of tools as
instrument, small tools as humor pliers
etc. or special tool required in the factory.
Refrigerated Store: Also called Walk in
used to store perishable items as fruit
,meat,vegetable etc.
Dry Store: Placed where all groceries can
be stored and it protected from moisture.
Sundries Store: For non food items as
papergoods, cleaning supplies etc.
 Condition of Equipment

Temperature of Food :

1) Fresh Meats 34*F to 36*F

2) Fresh Dairy 34*F to 36*F
3) Fresh Fish 30*F to 34*F
4) Frozen Food -10*F to 0*F
 Temperature of Beverages :
1) Red Wines 13-16*C(55-60*F)
2) Sparkling Wine 13*C(55*F)
3) White Wine 10*C(50*F)
4) Fortified Wine 17-22*C
5) Soft Drinks 13*C(55*F)
6) Beer 13*C(55*F)
7) Spirits 13-16*C(55-60*F)
 Storage Container
1) Staples : Airtight insect proof
2) Perishable: Pack to maintain original quality.
3) Fresh Fish: Packed in Shaved Ice.

 Shelving
1) Perishable :Slatted Shelving.
2) Non-Perishable : Solid Steel Shelving.
 Arrangement of Food
There are certain method of food arrangement

1) Rapidly Available
2) Fixing Definite Locations
3) Rotation of Stock
Rapidly Available: Is usually helpful to arrange
storage facilities so that the most frequently
used items are kept.
Fixing Definite Location: Each item should
always found in same location and attention
should be given to ensure deliveries.
Rotating of Stock: Food controller must
establish procedure to ensure that older
quantities of any items are used before any
deliveries.
 Location of Storing Facilities
Perishable and non Perishable should be located
between the located area. Preferably close to both
such location facilities moving of food receiving
Areas.

1) Speeding and Storing of Food.

2) Maximizing Security.
3) Reducing Labors Requirement.
 Security Issues
Food should never stored in a manner that
permits pilferage. That is another reason for
moving food from the receiving area to storage
quickly as possible.

1) Store room never be left Unattended.

2) Employee should never be permit to remove items
to their own will.
3) Store kept on their specified timing.
4) Store is closed the key should be kept by
manager or in office safe.
 Issuing Control
Issuing are made by the requesting
department. Requisition is used for issuing of
item to the consult Department.

Method used for Issuing

1) FIFO(First in First Out): Used for Perishable
Food item issued earlier and charged
accordingly remaining purchase charged at
requesting Department.
 LIFO
LIFO(Last in First Out) :For Non Perishable
Food item. In which food charged at the
latest price through issue of stock are
ensure to made satisfactory rotation of
food which prevent microbes. It is
assumed that issue will be from the latest
purchase and price accordingly.
 Records Maintain
Beverage Perpetual Ledger
Emphasis Return Book
Hospitality Complimentary Book
Cellar Control Book
Purchase Order
Invoices
Requisition
Delivery Note
Credit Note
Bin Card
 Beverage Perpetual Ledger
This Master Ledger is Prepared in the
Control of Accounts department consists
cards prepared for each individual type of
beverage hold at stock.
 Emphasis Return Book
Many of the containers of beverages as
Crates, Kegs, Bottles, etc. are charged by
the supplier according to delivery. An
emphasis return book should be maintain
in which entries of all container received
by the supplier should be made.
Hospitality Complimentary Book
This is necessary to record the issue of
drinks to the kitchen or other goods of staff
at paid down by company policy.
 Cellar Control Book
Provide Control of all daily deliveries to the
cellar and daily issue of each beverages
from the cellar to various bars and should
cross check with the entire in the Bin Card
and perpetual inventory ledger held in
control.
 Cellar Control Book
Item Unit Stock Issue Total issue Return Book stock Bal.
 Purchase Order
Amount of liquor to be ordered are determine by physical inventories,
issues, requisition ,reorder points as determined from inventory sheet.

Purchase order Include:

1) Terms & Condition
2) Delivery Date
3) Requisition Number
4) Special Instruction
5) Shipper
6) Freight Charge

Copies Forwarded to:

1) Purveyor 2 copies
2) Receiving Department
3) Accounts Department
4) Bar Manager
 Format of Purchase Order
Registration No. ………….. PO……………..
Order From Sheraton Corporation,Newyork
Terms……………. Freight………………. Delivery Date…………….
Special Instructions…………………………………
Code Item Seize Quantity Price Total
231 Salmon 5 K.G 200re/ 1000Re.

Order Total 1000 Re.

Purveyor 2 White Authorize By…………….
Account 1 Yellow Date………………………
Receiving 1 Pink
Agent 1 Blue
 Invoice
Invoice are furnished and made by the purveyor at least
three copiers which must be signed by the receiving clerk.
Copies of Invoice
1) The Purveyor
2) Accounting Department
3) Receiving Clerks
Purpose of Invoice
1) Normal Delivery
2) Credit request at Delivery
3) Credit by Accounting
4) Credit Request by storeroom
 Requisition
Requisition is a sheet which must be closed by
rolling off the unused portion of the sheet
immediately below the last item of
requisitioned. Requisition Contain:

1) Date of Issue
2) Department to receive Merchandise
3) Item Requisition by Name
4) Number of Units
5) Unit Size
6) Signature of Authorize Person
 Purchase Requisition
Date…………….. …… Serial No……………….
Department…………….

Description Quantity Unit Budget Code Remarks

Department Head Authorize of Purchase

(Signature) (Signature)
 Stores Requisition
Department……………………… No. …………………..
Date………………….

On Hand Additional Requirement Items Quantity Cost Amount

Store Keeper
(Signature)
 Delivery Note
The receiving Department must check all the
deliveries for quantity by comparing the
delivery note with a copy of purchase order if
all the quantity match up the purchase order,
then check the quality.

Copies of Delivery Note

1) Top Copy : Returned in Receiving Depart.
2) Second Copy : Return to Deliveryman by sign
of Senior Receiving Member.
Sheraton Hotels Pvt. Ltd.

Delivery Note
Customer Copy
To,
………………….. ……………………….. NO. ……………………..
………………….. ……………………….. Date. …………………..

Order No. Quantity Description Unit Value Remarks

Delivered By Received By :
(Signature) (Signature)
 Credit Note
When the delivered merchandise does not
confirm about the order what appears in
invoice quality, quantity, specification of price
and all or some part of shipment is returned in
credit memo.
Copies of Credit Memo
1) Original Copy : Delivered to Purveyor
2) Second Copy : F & B Controller
3) Third Copy : Receiving Department
 Format of Credit Note
To,
……………………………… Number …………………………
……………………………… Date ………………………….

Quantity Unit Item Cost

Unit Total

Vendor
F & B Controller Requested By:
Accounts (Storekeeper)
Inventory Control
Introduction to Inventory Control
Food and Beverage Department also
responsible for Inventory Control in which
certain items are keep in By making
several stock groups.
The need of inventory control is due to the
spoilage of food product which loose their
freshness, weight due to dehydration.
 Types of Inventories
1) In process Inventories

2) Batch Inventories
 In Process Inventories
In process Inventories are normally
negligible. No maturing process is
required and once processed food may be
immediately served.
The larger in process inventories becomes
in relationship to sale the greater chance
for loss due to spoilage.
 Batch Inventories
Most of the food product are purchased in
batches the size of product determine
perishablity, storage
facility,frequency,transportation charges in food
product.
A minimum par stock is maintain all the times.
EX: Live Lobster which are being Highly in
cost. We should maintain at minimum levels
so that few if any are lost due to spoilage.
 Methods of Inventory Control
1) Open storeroom
2) Bin Cards
3) Dual Bin
4) Perpetual Inventory
5) Physical Inventory
 Open Storeroom
In small establishments No one is
responsible for recording merchandised
issued or received daily basis. Though
one person is held accountable for
ordering and taking inventory.
The problem arise shortage due to theft
due to running out of merchandise.
 Bin Card
A Bin Card with minimum stock level
posted should somewhat alleviate the
problem of running out since the person
taking inventory prior to ordering can
check visually if the stock has fall below as
per requirement.
 Bin Card
Indicated as a Inventory Control Method in which the
person taking Inventory prior to ordering can check
visually of the stock has falls below the par required.
Bin card Contain:
1) Description of Commodity
2) Quantity of Issued Goods
3) Date
4) Balance Remaining
5) Accounting of Received Goods
6) Minimum Stock Level
 Bin Card
Commodity……………………. Reorder Point…………..
Maximum Stock………………. Bin Number…………….
Minimum Stock………………. Supplier………………….

Date Reference Received Issued Balance

 Dual Bin
Under this method inventories of crucial
items may be kept. One is available to all
employees while the otherwise is used
emergency amount to be held on hand at
all times.
 Perpetual Inventory
Perpetual inventory used in those
operation which having a full time
storekeeper who is responsible for issuing
of stock item as well as maintaining the
record and assist in ensuring that there is
an adequate supply of merchandise.
 Physical Inventory
Physical Inventories record on all the
items are physically check in all the
storage areas. The employee responsible
for this record .
The inventory items are systamatically
check and arrange if needed.
 General Problems in Inventory
Control
1) Spoilage of Food and Beverage items

2) Estimating Value of Merchandise

3) Goods in Process
Spoilage of Food and Beverage
Items
All operator deduct spoilage by proper
rotation of goods but natural spoilage are
sprinkled does occur.
In accounting of cost food controller
should allocate a space on store keeper
report from shrinkage and spoilage.
Estimating Value of Merchandise
Liquor which are particularly filled bottle
may be accurately estimated food items
may combine many different ingredients of
verifying cost.
Thus the value of finished goods may be
difficult to estimated.
 Goods in Process
In the kitchen hundred of items are open
for the production of merchandise .
The value of these items may be consider
in addition of food may partially process
one day service .
EX: Spices, Sauces, Condiments
 Thank You
Om Singh
Amrapali Institutes of Hotel Management