1 You have brought up an important aspect of the cost of sales, inventory. Inventory is the purchased items that are still in house when you take your inventory. Most F&B operations take their inventory once a week. When counting inventory it is important that you are consistent in the way you do it. This would include the items you inventory and how you inventory them; by each, case and etc. When I take inventory I do not inventory bread and milk since they move so quickly in and out of the operation.
What is the proper way to take an inventory?
2. FIFO or first in first out is a term used to rotate products on your shelves. Basically you are using the oldest product first. Many of you are also talking about inventory levels and how to approach it. For your staple items( spices, sugar and etc.. you can use a par level. A par level is a set inventory amount that when reached you re-order that product.
How do you figure out what amounts of foods to order?