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"Inventory" to many business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Likewise, merchandise stocks in a retail store contribute to profits only when their sale puts money into the cash register. In a literal sense, inventory refers to stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small and large businesses cannot absorb the types of losses arising from poor inventory
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This makes it possible to determine the total cost. The computer software also compares the total cost of food on hand with the total amount of sales for that week and helps compute the percentage of on hand inventory.

2.0.8 The company has a set standard of having between 29% and 36% for it’s on hand inventory level.

2.0.9 Kristen manages has been running the above average in terms of food cost because she has been using her intuition to decide how much products to order irrespective of the fact that the product order sheets provides a moving average usage of each product.

2.10The benchmark cost accounts for 30% of total cost in terms of a stores cost structure and it helps the manager to know how well the restaurant has been managing its inventory.


* Proper inventory management will enable Kristen order the right amount of food items needed for the restaurant. This which will help reduce surplus of menu items that are no longer fresh and must be discarded.

* Good inventory management helps to attract and retain old and new customers.

* Since the farmers market is a competitive one, good inventory management is needed to give them a competitive edge over their competitors.

* Proper inventory level helps to meet predetermined standard sets for

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