Pizza Raw Materials: Inventory Management

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Pizza Raw Materials Inventory What are the issues that a small pizza restaurant might face in inventory management? Introduction Small pizza businesses face a rather unique circumstance in regards to maintaining their inventory levels. On one hand, a fixed period system would offer consistency in ordering procedures. However, this could create waste and unneeded orders. One the other hand, a fixed quantity system for inventory orders would guarantee a specific amount of fresh ingredients delivered in one batch. However, this approach would create irregularities in the ordering process and the downstream supply chain. For example, in a peak sales period, the fixed quantity order may occur every couple days but during an off-season period orders for ingredients could take two weeks or more. Sporadic orders placed with vendors could possibly cause them havoc because they will not be able to properly forecast their own inventory amounts. This analysis will consider both ordering systems in regards to what challenges might be found in inventory management in a small pizza restaurant and make recommendations as to how they might manage their inventory the most effectively. Fixed Period Inventory Ordering System In a fixed period inventory ordering system the orders for inventory, in this case ingredients will be placed at set intervals. For example, ingredients such as peperoni, olives, and cheese might occur every week on the same day. As opposed to ordering an ingredient

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