SYSTEM DEVELOPMENT PROJECT

PROJECT TITLE: RESTAURANT INVENTORY MANAGEMENT SYSTEM

ABSTRACT
Each food item is linked to respective resources, ingredients, and as each product is sold the
ingredients utilized in making that product are also utilized. These changes in inventory are kept
track of through utilizing a database.

The project also proposes to keep track of each and every ingredient by dynamically linking it to
the product and as a result create a dependent relationship to that product. At a specific time
period (typically the end of the week); if the inventory is below the threshold level, order forms
to the specific suppliers are generated in order to restock the required items for the next week.
The project also makes smart predictions on required inventory for the following week based
upon the predicted climate and possible occasions or events that may influence near future sales.
At the end of the week, the software takes into account all threshold levels, predictions, and other
factors to generate an order form, which after being verified by the manager is sent out to the
vendors

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ACKNOWLEDGEMENT

I take this opportunity to thank all those people who were involved in one way or the other in
making the process successful.

I express my deep gratitude to Mr. Elvis Gates, Kikwetu Restaurant, for the time invested and
letting me use his restaurant as a case study for my project. I would also like to thank my lecture,
Mr Fredrick Musika, for the immense advice and guidelines passed on to me through out the
entire period.

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Table of content

Declaration………………………………………………………………………………………2

Abstract……………………………………………………………………………….…………3

Acknowledgment………………………………………………………………....……………..4

Table of content

Chapter 1: Introduction …………………………………………………………………...…….7

1.0 Background of the study ……………………..……………………………………………..7

1.1 Statement problem ....………………………………………………………………….……8

1.2 Objective of the study...…………………………………………………………………….9

1.3 Research questions …….……………………………………………………………….…..9

1.4 Justification of the study ……………………………………………………………….….10

1.5 Scope of the project..………………………………………………………………………10

1.6 Limitation of the project ……………………………………………………………….….11

Chapter 2: Literature review ………………………………………………………………..12

2.0 Introduction ………………………………………………………………………...12

2.1 What is a Restaurant ………… ………………..…………………………………….…….12

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2.2.Types of Restaurant Technology ……………………………………………………...12

2.3 Inventory Management History …………… .. .. …………………………………..14

2.4 Role of Inventory Management ………..…………………………… …………………..15

2.5 How to improve Inventory Accuracy in a Restaurant …………………………………..18

2.6 Advantages and Disadvantes of an Inventory Management System ……………………...19

2.7 Conclusion ……………………………………………………………………………20

Chapter 3: Research design and methodology..………………………………………………..22

3.0 Introduction ………………………………………………………………………………22

3.1 Overview…………………………………………………………………………………...22

3.2 Feasibility study…………..……..…………………………………………………………23

3.3 System Requirements………………………………………………………………………24

3.4 Data Analysis……………. ………...………………………………………...…………….27

Chapter 4: UML diagrams ……………………………………………………………………..28

4.1 Use Case diagram…………………………………………………………………………..28

4.2 Clas diagram ………………………………………………………………………………30

4.3 Object diagram……………………………………………………………………………...31

4.4 Activity diagram……………………………………………………………………………32

4.5 State chart diagram………………………………………………………………………….33

4.6 Collaboration diagram………………………………………………………………………33

4.7 Sequence diagram……………………………………………………………………………

34

4.8 Association diagram …………………………………………………………………………36

4.9 Database Schema ……………………………………………………………………………37

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background

My proposed project is a real time implementation of a stock inventory control system

for a restaurant business.

A stock inventory management system is a system that enables people and companies to
know how much stock they have at a given time and how to keep track of it.

My idea was to start a stock inventory system to that will help restaurant owners and
managers keep track of their stock eg. Profits, supplies.

Most restaurant owners are faced with this problem and have to spend extra capital so as
to be able to keep track of their stock. One example of such companies is Kikwetu
restaurant. Kikwetu is a restaurant that was started in 2010 by Mr Peter Kamwaro. It is
situated in kikuyu. Once it was started the restaurant immediately became the talk of the
town meaning Mr. Peter Kamwaro had to up his game so as to meet the demands of his
customers. Though he was able to make his restaurant more appealing to his customers

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there are certain factors that are proving to be tough to deal with. He has had a huge
problem managing his stock manually and that’s where I come in.

Currently at Kikwetu and the restaurant industry in general, restaurant staff and
managers are forced to keep track of inventory by hand. This means that they must count
what they have sold and what they have left at the end of each day. They must also fill
out order forms to be sent to vendors so that they can restock their inventory in
preparation for the next week. This wastes valuable man hours and is a rather simple
task to automate using my system.

I propose a solution to this issue by developing system that keeps track of inventory in
restaurants and updates it according to daily sales. Each food item is linked to its respective
supplies and as each product is sold the ingredients utilized in making that product are also
utilized. These changes in inventory are kept track of through utilizing a database.

I propose to create a system that will help restaurants to keep track of each and every
product supply by dynamically linking it to the product and as a result create a
dependent relationship to that product. At a specific time period (typically the end of the
week); if the inventory is below the threshold level, order forms to the specific suppliers
are generated in order to restock the required items for the next week. The project also
makes smart analysis on the type of food most requested and the time or period it is
most requested. This helps managers to know their most popular foods and when their
demand is high.

1.2 Statement of problem

Most restaurants are facing various problems when it comes to stock management. Mr. kamwaro
of Kikwetu Restaurant cited various complaints regarding a basic resources requirement list that
has to be maintained manually by the staff. To keep track of their inventory levels they have to
calculate a list of the supplies or items utilized during a course of time, calculate and analyze the

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requirements for the future, and place their next order to the vendors if needed. This process
takes up a lot of time and human effort, and is also prone to human error.
This poses a problem of a situation that the staff at Kikwetu as well as many other restaurants
faces. It takes up a lot of time to manually keep track of sales and place correct orders to
vendors, wasting useful labor in trivial works. A product which would assist in tackling the
above mentioned problems would prove to be fruitful to clients such as Kikwetu and other
restaurants as this product would help convert the unproductive time to something more useful,
by removing the unnecessary error prone complications and efforts.

1.3 Objectives:

To minimize capital investment in inventory by eliminating excessive stocks. Restaurant owners

will be able to know the type of food their customers enjoy and the type that is not popular to the
customers. This will enable them to make the necessary changes to avoid incurring losses.

Maximize profit. Restaurant owners will be able to know the most popular foods by their
customers and what time the customers prefer the food. This will assist them to make a menu
that will attract more customers hence increasing their profits.

To ensure efficiency. The basic idea involved here is that each item will be linked to its
required supplies which are stored in a database. At the end of each day the system will
analyze the total sale of menu items and proportionately deduct an appropriate amount
from the resource database. Then it will compare the current available resources with the
threshold level of each supply. If it finds that certain supplies are almost out of stock, it
will generate a purchase order for those items and send it to the manager or owner for
approval.

The system will ensure groceries are tracked correctly, timely orders will be sent out to
the vendors or suppliers, and the inventory will be maintained and updated at all times.

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The system will also keep track of the shelf life of resources. If any product or supply is
about to expire the system will inform the manager or owner the details of the quantity
that is near its expiration date.

1.4 Research questions

How will the system solve the problems faced by restaurants in stock management?

Will the system work effectively to solve the stated problems?

How will the system increase profits to the restaurant?

1.5 Justification

The system will help improve profits and efficiency for restaurants. Restaurants owners and
managers will be able to easily regulate their stock without any delays in supply. This will ensure
that the restaurant always has ready stock avoiding delays and lack of certain food because of
lack of supplies.

The system will help restaurant to save time. The restaurants will be able to save a lot of time
that they would have spent making orders, calculating profits, supplies utilized and amount
needed to purchase new supplies. This time will be spent doing other things that are beneficial to
the restaurants.

The system will help restaurants to reduce unnecessary expenses. Capital spent on people and
resources used to deal with stock calculations and tracking will no longer be necessary. The
system will be able to do this on its own hence enabling restaurants to save money.

It avoids shortage of supplies and duplicate ordering. The system will ensure that supplies are
immediately ordered once they are almost running out. It will also ensure no mistakes are carried
out when making the orders.

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1.6 Scope of the project
The project runs on the basic idea that each item will be linked to its required supplies
which are stored in a database. At the end of each day the system will analyze the total
sale of menu items and proportionately deduct an appropriate amount from the resource
database. Then it will compare the current available resources with the threshold level of
each supply. If it finds that certain supplies are almost out of stock, it will generate a
purchase order for those items and send it to the manager or owner for approval.
The system will also ensure groceries are tracked correctly, timely orders will be sent
out to the vendors or suppliers, and the inventory will be maintained and updated at all
times. The system will enable restaurant owners to be able to know the type of food their
customers enjoy, the time most food is consumed and the type of food that is not popular
to the customer.
The system will also keep track of the shelf life of resources. If any product or supply is
about to expire the system will inform the manager or owner the details of the quantity
that is near its expiration date.

1.7 Limitations

Financial constraints. Conducting research on the matter has proved to be financially

cumbersome. This is because in order to conduct proper research there are a lot of activities that
are entailed. The activities include transport costs, internet costs, phone credit costs etc

Time. Time has been a hindering factor since am still a student and I have a school schedule I
need to adhere to. This in general has affected the time put in the project so as to make it a
success. Convincing restaurant owners to take up the idea. Coming up with a system is one thing
but convincing business people to buy into it is another. Most restaurant owners will be skeptical
to buy into the idea due to fear of incurring losses in case the system does not work.

Efficient inventory control methods can reduce but cannot eliminate business risk. Using the
stock inventory management system will not guarantee the company profits. The company may
still be faced by financial losses. Hence the company should not only depend on the system but
also depend on its financial advisers and other resources.

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CHAPTER 2.
LITERATURE REVIEW.

2.0 Introduction
So as to be able to tackle this chapter we fast of all need to understand what a literature review is
all about.

The aim of a literature review is to show your reader that you have read, and have a good grasp
of, the main published work concerning a particular topic or question in your field. This work
may be in any format, including online sources. It may be a separate assignment, or one of the
introductory sections of a report or dissertation. The review is guided by ones research objective
or by the issue or thesis someone is trying to argue out that will also provide the framework for
ones further work. (Roberts, 2008)

This article focuses on precisely that. It provides an inbound look on inventory management and
its relation and impact in the restaurant industry.

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2.1 What is a restaurant?
A restaurant is “a place where people pay to sit and eat meals that are cooked and served on the
premises. (Oxford Dictionaries, 2012). They have a similar business model to hotels and airlines,
which already apply revenue management (RM) but their inventory is far more complex.

2.2 Types of restaurant technologies

Superior customer service is at the heart of every great restaurant, and new restaurant
technologies can give restaurants an edge in responding to customer needs (Strong 2013). From
providing entertainment to expediting service, restaurant technology is creating a better dining
experience for customers. Savvy restaurateurs across the country are using new, modern devices
to keep their restaurants on the cutting edge of the industry. (Reynolds, 2008).

2.2.1 Entertainment restaurant technologies eg. iPad apps, gesture-enabled games

projected onto restaurant floors, designed to entertain kids while they wait for their meals.

Of course, social media is a form of entertainment, too. Many restaurants find that sites like
Facebook are useful, not only for building a loyal customer base, but also for enhancing the order
process. Facebook-based ordering, along with Facebook payment integration, is one of the
emerging restaurant technologies designed to increase restaurant sales and enhance customers’
overall dining experience. (Ottenfeld, 2008)

2.2.2 Increasing the appeal of the restaurant industry for many customers is the escapism
of entering the restaurant and receiving friendly and efficient service.

As restaurant owners are learning, service can be greatly enhanced by restaurant technologies
that improve communication between staff members and customers. (Raj, 2008).

2.2.3 Table Tracker

It is a new piece of restaurant technology that helps servers locate customer tables quickly.
Perfect for fast-casual restaurants, it serves the same purpose as old-fashioned table cards,
designed to help servers find customers. With Table Tracker, a customer places an order and is
given a device that remotely communicates with a touch-screen PC in the expeditor area,

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allowing runners to instantly know where an order is going, and how long a customer has been
waiting. The result is faster, better service, more efficient staff and satisfied customers. (Hill
2014)

2.2.4 Digital Survey Tools

They offer restaurants the capability to really listen to their customers. These handheld
devices enable customers to provide immediate feedback, and negative feedback can be set to
alert management, allowing for quick response to potential problems. A built-in calculator helps
customers calculate tips or split bills, and a promotional feature keeps even the regulars
interested, allowing for giveaway potential with completed surveys. (shabbir, 2012).

2.2.5 Wireless paging systems

They enable restaurants to preserve ambiance while communicating with customers.

Available in a wide variety of styles, these pagers enhance customer service by giving more
precise wait times, improve table turnover times through more effective communication, and
increase overall efficiency of restaurant staff. (Sareyka, 2014).

2.2.6 Inventory managemet systems

This are systems that allow restaurant users to manage their inventory through various computer
systems. Inventory management systems assist restaurant owners in tasks such as automatic
product ordering, avoiding overstocking or understocking, increasing profits, stock management
etc. (Cohen, 2007).

2.3 Inventory Management History

In the earliest days of shop keeping, merchants wrote down purchases, or they looked at how
many units were gone at the day's end and then did their best to forecast future needs. Experience
and intuition were key skills, but it remained an inexact method, even when applied to operations
that were quite small by today's standards. (Hoffman, 1997)

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After the Industrial Revolution, efficiency and mass production became the main goals of
businesses, along with an improved customer experience at the point of sale.(Miller,1997) A
team at Harvard University designed the first modern check-out system in the early 1930s. It
used punch cards that corresponded with catalog items. A computer would read the punch cards
and pass the information to the storeroom, which would then bring the item up front to the
waiting customer. Because of the automated system, the machines could also generate billing
records and manage inventory. (Toelle, 1996)

The punch card system proved to be too expensive to use, but a version of it is in use today in
some stores, where merchants place cards with product information on the aisle for customers to
select and bring to the checkout line. This usually applies to items that are expensive or large and
to controlled items, such as medicines. (Krupp, 1997)

Merchants knew they needed a better system, and researchers created the forerunner of the
modern bar-coding system in the late 1940s and early 1950s. It used ultraviolet light-sensitive
ink and a reader to mark items for sale. Again, the system was too cumbersome and lacked the
computing power needed to make it work. Technology had yet to catch up with their ideas.
(Coulson, 1997)

The development of affordable laser technology in the 1960s revived the concept. Lasers allowed
smaller, faster and cheaper readers or scanners. The modern bar code, or the Universal Product
Code (UPC), was born and caught on just before the 1970s. As computing power became better,
the power of UPC codes to help track and manage inventory improved exponentially. (Sinha,
1994)

During the mid to late 1990s, retailers began implementing modern inventory management
systems, made possible in large part by advances in computer and software technology. The
systems work in a circular process, from purchase tracking to inventory monitoring to re-
ordering and back around again. (Robinson, 1999)

2.4 Role of Inventory Management

Food and supplies purchased, but not immediately used (inventory), often represent a significant
portion of operational revenue.(Adams, 2005) One classic method of controlling food cost is to

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maintain inventory levels high enough to ensure menu items can be produced in the right
quantity, but low enough to not have excess product sitting in storage. This is called inventory
control. (Platten, 2008)

Not producing enough of each menu item, whether due to lack of raw ingredients or inadequate
forecasting, leads to customer disappointment and may violate program regulations. The goal is
to have all choices available to students but not have excessive amounts leftover. Although the
concept appears simple, it requires careful planning, standardized procedures, and monitoring to
achieve desired results. (Sturn, 2008)

In the past managers only needed to consider inventory control for their own facility in order to
control costs. The age of supply chain management has made school nutrition operators more
aware of the cost of inventory across the supply chain and the effect it has on end costs.
(Peters, 2010) Producers, manufacturers, and distributors experience lower margins and waste
when anticipated sales do not materialize resulting in excess inventories of product. This cost
is passed along to the school district, which is why using predictable buying patterns will lower
food costs to schools. (Velthoen, 2012)

Other impacts of inventory management include:

2.4.1 Customer Satisfaction

Good inventory control means that your time to fulfill orders stays low. If you use your
inventory management system to analyze product sales, you can have your popular items in
stock and ready to instantly fulfill any customer's order. You also know which special orders sell
on occasion and have those products available in a limited quantity to keep your inventory costs
down and to develop a positive reputation for quickly filling special orders. (Root III,2006)

2.4.2 Pricing

When you have a well-designed inventory management system, you are able to reduce the
amount of time that products sit on your shelves.(Hunt, 2007) When you don't carry extra
inventory for extended periods of time, your inventory costs decrease. This is a savings that you
can pass on to clients in the form of lowering product prices. (Ronson, 2009)

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2.4.3 Maximizing Efficiency

Another aspect of inventory management is efficient product handling. The design of the facility,
especially the location and arrangement of storage areas can affect the ease with which products
are delivered to production areas, as well as the security of inventory. Designing inventory forms
to match the layout of storage areas can reduce the time needed to count inventory. (Jacobs,
2005)

2.4.4 Financial Management

One of the most important goals of inventory management is improved financial control. The
financial goal of inventory management is to ensure that the maximum value is generated from
food and supply investments. (Hayes, 2011)In addition to the actual cost of acquiring inventory,
costs are associated with transporting and storing inventory. These costs are called carrying costs
and may include storage rental, utilities, insurance, cost of shrinkage, cost of obsolescence, cost
of wages and benefits for labor to move and count stock, and opportunity cost - how much more
you could have earned if the money were spent elsewhere. (Kimes, 1999)

2.4.5 Managing Quantities

The correct quantity of inventory is the level at which sufficient product can be produced to meet
customer demands no more, no less. (Wal, 2000)Some safety stock, a small cushion of inventory
for unpredicted usage, is necessary to prevent sites from running out of food. For many products,
this may mean setting a periodic automatic replacement level or a reorder point. Par levels are
usually set for items served daily such as milk, common ingredients used in multiple recipes e.g.
sugar, flour, spices. For entrees, fruits, vegetables, and bread products it is best to project serving
quantities for the week’s menu. (Tsang, 2011)

2.4.6 Food Safety

Food safety is a critical consideration in inventory management. It is very important to protect
food inventories from both unintentional and intentional contamination. Proper placement of
product in storage areas can ensure that raw products do not cross-contaminate food that will

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receive no further cooking as well as prevent accidental contamination from chemicals.(Cooper,
2002)

2.4.7 Menu Planning

Menu planning is the underpinning of inventory control because the menu establishes what items
are needed and how frequently they are going to be used. (Chambers, 2001). Effective menu
planning requires considerable planning and skill to ensure that menus are cost effective, popular
with customers, and meet nutrition and program guidelines. (Berry, 2005) It is unlikely that
menus planned monthly by each site manager effectively control inventory.

Using a central cycle menu controls inventory by making the items and quantity needed
predictable. When the same items served together are repeated, a pattern emerges that, during
each cycle, can be used to predict what customers will purchase. This allows managers to
improve ordering forecasts. (Ballerini, 2007)

2.4.8 Forecasting and Ordering

Forecasting and order can greatly affect inventory control. When forecasting is not accurate
and products are ordered in excess, too much money is tied up in inventory, which reduces cash
flow this then leads to more opportunity for spoilage, the likelihood of theft is increased, more
products become obsolete, and the quality of products deteriorate overtime.(Corbin, 2000)

Ordering based on menus is another alternative. Order guides are designed to match weekly
menus. Ordering by menu still requires that you establish the amount you would need to fulfill
the menu plus a small extra amount for safety stock. You still consider the amount committed
before the order arrives, and the amount currently on inventory. The only difference is the item
would not be ordered until right before it is on the menu. (Morrison, 2012)

2.5 HOW TO IMPROVE INVENTORY ACCURACY IN A RESTAURANT

Take inventory frequently. For some items it should be done daily, for others twice a week. At a
minimum it needs to be completed before placing weekly orders. (Richards, 2002). Also clean
out and organize your stock areas before taking inventory. Throw out items that have expired,
move similar items to the same shelf and in general, tidy up. (Israelit, 2011)

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 Take inventory after the restaurant has closed, or before it opens. You cannot take accurate
inventory while goods are being sold. Whatever time you pick, stick with it. If you always take
inventory on maybe on Tuesdays, but sometimes you do it at night and sometimes in the
morning, there will be fluctuations in week to week results. (Baker, 2005)

Take inventory before a new shipment arrives and then add the new stock to your counts. Do not
attempt to take inventory while deliveries are being made. Items will end up being double-
counted. (Roberts, 2008). You should also use Inventory Count Sheets. Have one for daily, one
for eg. weekly and standardize the items included and the unit each item is tracked in. Changes
in what items are tracked can cause large fluctuations in recorded inventory. (Jacobs, 2002)

When taking inventory, make part of the practice ensuring that items are being used on a First In,
First Out basis. (Millward, 2007) Older goods should be rotated to the front of shelves so they
are used first. Additionally, try to keep the amount of items you have on hand as low as possible
to reduce theft and spoilage. (Adams, 2005)

Use two people to take inventory. They should count items separately and then compare results
for anomalies. Pairing reduces errors and the temptation to manipulate results or pocket goods.
(Gilbert, 2008). Use the same staff members to take inventory. They will not only get faster at it,
but they will tend to be more consistent. (Doumenc, 2007)

Standardize what your unit cost is. The price of many items (like ground beef) changes week to
week. Use the latest price paid as the standard. It is the easiest to find and remember. (Amell,
2008.) As you standardize unit cost also ensure you maintain consistency. Using the same staff,
taking inventory at the same time and counting the same items are some of the easiest ways to
improve your accuracy. (Culnan, 2010)

2.6 Advantages & Disadvantages of an Inventory Management System

As a business owner, you can choose to rely on traditional hand counting methods or institute
some form of computerized inventory control. (Conrad, 2011). Both approaches have their
advantages and disadvantages, and it is important to weigh the relative advantages carefully.

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2.6.1 Speed and Efficiency

An inventory management system makes everything from inputting information to taking

inventory much easier. Doing a hand count of inventory can take long, but with an inventory
management system, the same process can be done in a matter of hours. (McCarthy, 2011)

2.6.2 Document Generation

Managers and workers can use the inventory management system to automatically generate all
kinds of documents, from purchase orders and checks to invoices and account statements.
(Osmanbegovic, 2010) Managers can also use the inventory management system to
automatically order products when they run low. (Miller, 2005)

2.6.3 Timely Data

When dealing with a manual system, the data is only as accurate and up to date as the last hand
count. With an inventory management system, the management team can pull a report and
instantly see how many units are on the floor, how many have sold and which products are
selling the fastest. (Grant, 2013)

2.6.4 Reliance on Technology

With a computerized inventory management system, the company is at the mercy of its
technology. Outside factors like a power failure or the loss of Internet or network connectivity
can render the system temporarily useless. (Rodgers, 2012)

2.6.5 Accuracy Issues

A computerized system alone does not ensure accuracy, and the inventory data is only as good as
the data entry that created it. Companies that plan to use a computerized inventory management
system need to have a system in place to validate their data and check the numbers reported by
the system. A select hand count or targeted audit may be necessary to ensure the integrity of the
system. (Schmidt, 2010)

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2.6.6 Risk of Fraud

Any computerized system carries the risk of intrusion, and with an inventory management
system comes the risk of fraud as well. A dishonest supplier could hack the system to receive
payment for products never delivered, or a dishonest employee could redirect checks to
themselves. (Catfolis, 2008)

2.7 Conclusion

The aim of the essay was to have an inbound understanding of what inventory management is
and its impact on restaurants on a technological scale.

We were able to look at the history of inventory management, seeing that it dates back to the
1930s where team at Harvard University designed the first modern check-out system It used
punch cards that corresponded with catalog items. A computer would read the punch cards and
pass the information to the storeroom, which would then bring the item up front to the waiting
customer. Because of the automated system, the machines could also generate billing records and
manage inventory. (Toelle, 1996)

We then were able to look at the different roles that inventory management plays. In the article
the roles where broad so as to be able to touch on most if not all of the sectors that inventory
management offers a role. In a specific point of view inventory management has its impacts on
the administration, the organization, suppliers and distributers and the clients or customers. Most
of its impacts as we so in the article are mostly positive as it has helped many organizations,
restaurants included, to maximize their profits, avoid losses due to factors such as late delivery of
stock, expiry of stock, overstocking, understocking, customer dissatisfaction due to lack of
commodities etc. . (Root III,2006)

We also looked on various methods of improving inventory management in our organizations.

Methods such as to take inventory before a new shipment arrives and then add the new stock to
your counts, clean out and organize your stock areas before taking inventory. Use two people to

19
take inventory, use the same staff to take inventory. Were just but a few points raised in the area.
We were able to realize that buy looking into this areas stock management in our organization
will tremendously improve leading to higher profits, better stock arrangement and avoidance of
theft from suppliers and employees etc. (Richards, 2002)

With all the content covered in this article we can come to a conclusion that inventory
management has made businesses have an easier time when it comes to their stock. It can also be
seen that inventory management in the restaurant sector has brought nothing but positive factors
to the industry.

CHAPTER THREE

RESEARCH METHODOLOGY

RESTAURANT INVENTORY MANAGEMENT SYSTEM

(CASE STUDY OF KIKWETU RESTAURANT)

3.0 INTRODUCTION
This chapter presents the research methodology that was used in conducting the study. It
explains the research design, target population, sampling design, data collection and data
analysis.

3.1 OVERVIEW

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The project proposes to develop a software that keeps track of inventory in restaurants and
updates it according to daily sales. Each food item is linked to respective resources, ingredients,
and as each product is sold the ingredients utilized in making that product are also utilized. These
changes in inventory are kept track of through utilizing a database.

The project also proposes to keep track of each and every ingredient by dynamically linking it to
the product and as a result create a dependent relationship to that product. At a specific time
period (typically the end of the week); if the inventory is below the threshold level, order forms
to the specific suppliers are generated in order to restock the required items for the next week.
The project also makes smart predictions on required inventory for the following week based
upon the predicted climate and possible occasions or events that may influence near future sales.
At the end of the week, the software takes into account all threshold levels, predictions, and other
factors to generate an order form, which after being verified by the manager is sent out to the
vendors.

3.2 FEASIBILITY STUDY

This is the assessment of the practicality of a proposed project.

It is the ability to complete a project successfully, taking into account legal, economic ,
technological, scheduling and other factors.

It allows project managers to investigate the possible negative and positive outcomes of a project
before investing too much time and money.

3.2.1 TECHNICAL FEASIBILITY

It deals with the technological resources to undertake the project. It asks the question are the
processes and procedures conductive to project success?

This study was a major factor while conducting my research. I had to check and see if the firm
had adequate technical and technological facilities to enable me to conduct the project. I had to
check if the firm had the necessary equipment to conduct the project.

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3.2.2 ECONOMIC FEASIBILITY
It assesses the financial resources of the company in relation to the project. With regards to the
economic capability of the firm will the project run smoothly without any hindrances.

This is a major factor will conducting the project. I had to sit with the restaurant manager,
Kikwetu Restaurant, to see if the restaurant had the necessary finances to conduct the project.
We also had to analyse the impact of the project to the restaurant. We checked to see if the
impacts would be more or generate a higher profit that the level of money spent to conduct the
project.

3.2.3 LEGAL FEASIBILTY

This looks into the legal implications of the project.

I had to make sure that the project once completed will meet all legal and ethical polices set in
place.

3.2.4 OPERATIONAL FEASIBILITY:

This measures how well a company will be able to solve the problems and take advantages of
opportunities that are presented during the course of the project.

This entailed me looking into the impact the project would have on the restaurant. This are the
operations that the restaurant would be able to perform thanks to the project. I had to ensure that
the projects would be easy to use and operate.

3.2.5 SCHEDULE FEASIBILITY

Does the company have the necessary time resources to undertake the project. Will the project be
completed in due time.

This is a major factor for the restaurant. With regards to the resources spent by the restaurant the
project should be completed in due time to ensure it does not endure loss.

3.3 SYSTEM REQUIREMENTS

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3.3.1 Functional requirements

The System aims at providing an efficient interface that will assist the user in management of
inventory, it shall also provide the user varied options for managing the inventory through
various functions at hand. The ingredient levels are continuously monitored based on their usage
and are checked for the threshold levels in the inventory and accordingly the user is alerted about
low levels of certain ingredients. The design is such that the user does not have to manually
update the inventory every time, the System does it for the user.

The System calculates and predicts the amount of usage for specific set days that are pre-set by
the user, it also alerts the user of an impending action to order ingredients before the specific day
set by the user. Therefore the user never has to worry about manually calculating the estimated
usage of the ingredients as the System does it for the user.

The simple interface of the System has functions like adding a recipe, removing or updating the
recipe. It also extends to functions such as adding a supplier for an ingredient, removing the
vendor, checking threshold levels, processing orders, altering processed orders etc.

3.3.2 Non-functional requirements

3.3.2.1 Usability

The system must be easy to use by both managers and chefs such that they do not need to read an
extensive amount of manuals.
The system must be quickly accessible by both managers and chefs.
The system must be intuitive and simple in the way it displays all relevant data and relationships.
The menus of the system must be easily navigable by the users with buttons that are easy to
understand.

3.3.2.2 Reliability

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The System must give accurate inventory status to the user continuously. Any inaccuracies are
taken care by the regular confirming of the actual levels with the levels displayed in the system.
The System must successfully add any recipe, ingredients, vendors or special occasions given by
the user and provide estimations and inventoy status in relevance with the newly updated
entities.

The system must provide a password enabled login to the user to avoid any foreign entity
changing the data in the system. The system should provide the user updates on completion of
requested processes and if the requested processes fail, it should provide the user the reason for
the failure.

The system should not update the data in any database for any failed processes.

3.3.2.3 Performance
The system must not lag, because the workers using it don’t have down-time to wait for it to
complete an action.
The system must complete updating the databases, adding of recipe, ingredient, vendor and
occasions successfully every time the user requests such a process.

All the functions of the system must be available to the user every time the system is turned on.

The calculations performed by the system must comply according to the norms set by the user
and should not vary unless explicitly changed by the user.

3.3.2.4 Supportability
The software is designed such that it works even on systems having the minimum configuration.
The system is adaptable even if additional plugins or modules are added at a later point.

The data can be exported to the manager so as to make the system more portable.

3.3.2.5 Packaging

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The system must be able to run on the Windows operating systems beginning with Windows XP,
and must be able to run on current releases such as Windows 10.
The software must incorporate a license key authentication process. The packaging must come
with a manual that details the use of the system, and also the instructions on how to use the
program. This manual may be included either in a booklet that comes with the software, or on
the disc that the software itself is on.

3.3.2.6 Interfacing

The system must offer an easy and simple way of viewing the current inventory.

The system must be able to display the relationships between suppliers, ingredients, and recipes
in an intuitive manner.

3.3.2.7 Legal

The software must be licensed on an individual basis for smaller companies, as well as through a
multi-license deal for larger corporations.

3.4 DATA COLLECTION

Data collection was conducted by way of primary data collection from one of the following
respondent; Mr Peter kamwaro, Kikwetu Restaurant, employees at the restaurant. The target
respondents were the most competent to answer questions on inventory management. The
data collection instrument used was:

3.4.1 Questionnaire

It was distributed by drop and pick method, where the firm was accessible and by email for
the others. This gave me first hand primary data which was reliable and accurate for
analysis

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CHAPTER FOUR

4.1 USECASE DIAGRAM

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The manager of the restaurant acts as the main actor.

The manager updates the resourse database.

The manager performs the following functions.

1. The Manager activates the update resource database function.

2. The System presents a form to the Manager. The form asks for details of the sold food
items during the course of the week and the corresponding quantity of the food sold.

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3. The Manager inputs the data of the sold food for the week and the quantity that was sold
and presses Ok button.

4. The System reads the sold food data and then further reads, from the ingredients
database, the ingredients that were used in making of the food items that were sold.

5. The System now calculates the amount of resources used and will deduct the amount of
ingredients that were used up from the resource database.

The System now invokes the CheckThreshold usecase

4.2 CLASS DIAGRAM

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The main classes are:

ingredient

manager

Recipe

Supplier

Orders

Ingredient class relates to the managers class in a relationship of many is to one. Their can only
be one manager but the ingredients can be many.

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Manager class relates to the supplier class in a relationship of one is to many. One manager but
many suppliers.

Supplier class relates to orders class in a relationship of many is to many. Both the suppliers and
the number of orders can be many.

4.3 OBJECT DIAGRAM

Objects are real world entities. Its shows the different relationships between classes.

4.4 ACTIVITY DIAGRAM

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 An activity diagram shows the flow of activities which are ongoing non-atomic operations
in a state machine. Activities result in actions which are atomic operations.

4.5 STATE CHART DIAGRAM

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A state–chart diagram shows a state machine that depicts the control flow of an object from
one state to another. A state machine portrays the sequences of states which an object
undergoes due to events and their responses to events.

4.6 COLLABORATION DIAGRAM

Collaboration diagrams are interaction diagrams that illustrate the structure of the objects that
send and receive messages.

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4.7 SEQUENCE DIAGRAM

Sequence diagrams are interaction diagrams that illustrate the ordering of messages according
to time.

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34
4.8 ASSOCIATION DIAGRAM

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4.9 DATABASE SCHEMA

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References

The First Steps to Inventory Management. Geoff Relph, Witek Brzeski and
Gail Broadbear. InventoryMatters.com, (originally) December 2002—January
2003.

Inventory Control: How Best-in-Class Stack Up on Customer Service While

Optimizing Their Inventory. Matt Ball. Aberdeen Group, March 2012.

Distributors Put inventory Under the Microscope. MDM Staff Writers.

Modern Distribution Management, June 25, 2012.

Ten Ways to Improve Inventory Management. Pratap Mukharji, Sam Israelit,

Francois Faelli, Thierry Catfolis and Raymond Tsang. WSJ.com, July 6,
2011.

Ansel, D., Dyer C. (1999) “A Framework for Restaurant Information Technology”.

Cornell Hotel and Restaurant Administration Quarterly, Vol.40, No.3, pp.74-84.

Bernstein, D., Ottenfeld, M., Witte, C.L. (2008) “A Study of Consumer Attitudes

Regarding Variability of Menu Offerings in the Context of an Upscale Seafood

Restaurant“. Journal of Foodservice Business Research, Vol.11, No.4, pp.398-411.

Choi, S. (2011) “Practical Pricing and the Restaurant Industry: Application of

Revenue Management Principles to Pricing Menus and Services”. Yeoman, I.,

Hayes, D.K., Miller, A.A. (2011) Revenue Management for the Hospitality Industry.

New Jersey: John Wiley & Sons, Inc.

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Hwang, J., Yoon, S.-Y. (2009) „Where Would You Like To Sit? Understanding

Customers’ Privacy-Seeking Tendencies and Seating Behaviors to Create Effective Restaurant

Environments“. Journal of Foodservice Business Research, Vol.12, No.3, pp.219-233.

Kimes, S.E. (2004a) “Future of Revenue Management – Restaurant Revenue Management:

Could it Work?”. Journal of Revenue and Pricing Management, Vol.4, No.1, pp.95-97.

Richards (2002) “The Theory of Inventory Management.

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