Continue using your fictitious company-ANDREW AND SONS RESTAURANT and continue to develop the company profile and operating information.
Identify how your company uses inventory. What are three different inventories of products or supplies that the company maintains? What do you think is the total amount of inventory on average that is maintained in comparison to the annual income of the company? What do you think are some key methods that your company could use to manage and track inventory, e.g. technology systems, and/or lean methods?
• First discuss the recap your company and add any additional information about it that will add necessary and/or interesting information as background to the discussion of inventory.
• Then identify at least three different inventory types based on the products, supplies, or other materials needed, used, or provided to the customer. Note: capital equipment (machines or fixtures used to provide services) are not inventory. The cost of this equipment is depreciated and included in the overhead costs of providing the service.
• Determine the average value of the total inventory maintained by the company and how this compares to the annual gross income of the company. Discuss inventory turns and overhead costs if something is produced for inventory.
• What are the key issues or problems with inventory, such as accuracy of inventory records, maintaining, storing, moving and controlling inventory, assuring quality from suppliers, getting on time deliveries, etc.
• Discuss the key methods that the company uses or could use to manage and track inventory, e.g. technologies, methodologies, etc. And how does the company attempt to solve its inventory issues.
• Look into similar companies for comparable inventory turns.