12

TVL-H.E.-BARTENDING
Quarter 1 – Module 5:

INVENTORY, PURCHASING,
RECEIVING, ISSUING, AND STORING
TVL – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 5: Inventory, Purchasing, Receiving, Issuing, and Storing
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of such
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Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright
holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Mark Vincent L. Buling
Editors: Jonathan L. Bayaton & Jesusa D. Paladar
Reviewer: Jesusa D. Paladar
Typesetter: Ivah Mae C. Estoconing
Layout Artist: Ivah Mae C. Estoconing
Management Team: Senen Priscillo P. Paulin, CESO V Rosela R. Abiera
Fay C. Luarez, TM, Ed.D., Ph.D. Maricel S. Rasid
Adolf P. Aguilar, Ed.D., TM Elmar L. Cabrera
Nilita L. Ragay, Ed.D.
Antonio B. Baguio, Jr., Ed.D.

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

Tele #: (035) 225 2376 / 541 1117
E-mail Address: negros.oriental@deped.gov.ph
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TVL-H.E.-
BARTENDING
Quarter 1 – Module 5:
Inventory, Purchasing,
Receiving, Issuing, and Storing
Introductory Message
For the facilitator:

Welcome to the TVL -12 Bartending Alternative Delivery Mode (ADM) Module
on Inventory, Purchasing, Receiving, Issuing, and Storing!

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher
or facilitator in helping the learners meet the standards set by the K to 12
Curriculum while overcoming their personal, social, and economic
constraints in schooling.

This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this
also aims to help learners acquire the needed 21st century skills while taking
into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator, you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing
them to manage their own learning. Furthermore, you are expected to
encourage and assist the learners as they do the tasks included in the module.

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For the learner:

Welcome to the TVL-12 Bartending Alternative Delivery Mode (ADM) Module

on Inventory, Purchasing, Receiving, Issuing, and Storing!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time.
You will be enabled to process the contents of the learning resource while
being an active learner.

This module has the following parts and corresponding icons:

This will give you an idea of the skills or

What I Need to Know competencies you are expected to learn in the
module.

This part includes an activity that aims to

check what you already know about the
What I Know
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
This is a brief drill or review to help you link
What’s In the current lesson with the previous one.

In this portion, the new lesson will be

What’s New introduced to you in various ways; a story, a
song, a poem, a problem opener, an activity
or a situation.
This section provides a brief discussion of the
What is It lesson. This aims to help you discover and
understand new concepts and skills.

This comprises activities for independent

practice to solidify your understanding and
What’s More
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
This includes questions or blank
What I Have Learned sentence/paragraph to be filled in to process
what you learned from the lesson.
This section provides an activity which will
What I Can Do help you transfer your new knowledge or skill
into real life situations or concerns.

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 This is a task which aims to evaluate your
Assessment level of mastery in achieving the learning
competency.
In this portion, another activity will be given
Additional Activities to you to enrich your knowledge or skill of the
lesson learned.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part
of the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other
activities included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through
with it.
If you encounter any difficulty in answering the tasks in this module, do
not hesitate to consult your teacher or facilitator. Always bear in mind that
you are not alone.

We hope that through this material, you will experience meaningful

learning and gain deep understanding of the relevant competencies. You
can do it!

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 What I Need to Know

This module on Bartending is designed for students to develop their

knowledge, skills and attitude required in effective bar and beverage services.
It reflects the role of a “bartender” and/or a utility/back and may be part of
the role of a bar attendant. After going through this module, you are expected
to:
1. Identify purchasing, receiving, storing and issuing.
2. Discuss purchasing, receiving, storing and issuing.
3. Explain patiently the inventory in bartending.

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 What I Know

Direction: Identify the following sentences and write the correct answer that will
make the sentences complete by selecting the right word given in the box.

1. A system, manager’s count and record the amounts of each product in storage.
2. A system that continuous count of the number of items in inventory.
3. It involves the series of activities that begin when beverage and supply needs
are determined and ends after these items are sold or used by the operation.
4. Place all items in an orderly fashion on shelving with heavier items placed
near the bottom and lighter items on top
5. The process a business or organization uses to acquire goods or services to
accomplish its goals.
6. The process of moving products from storage rooms to drink production and
service areas.
7. The process used to ensure the use of the oldest products first by placing all
incoming products behind or under those items already in inventory.
8. A method assumes that products are withdrawn from inventory in the order
in which they are received and entered into storage.
9. The products most recently purchased are used first. The value of inventory
is represented by the unit cost of items in inventory the longest.
10. This method of inventory valuation considers the quantity of each product
purchased at different unit prices.

physical inventory issuing

perpetual inventory rotation

Purchasing FIFO

Security LIFO

Purchasing Weighted average

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 Lesson Inventory, Purchasing,
5 Receiving, Issuing, and Storing

Storing ingredients/beverages behind your bar may seem like an afterthought

to all of the other things you do to keep your bar running smoothly. But knowledge
on the proper ingredient storage is one of the best things you can to to keep your
ingredients safe and fresh as long as possible – helping improve the bottom line and
(more importantly) keeping your cocktails tasting delicious!

What’s In

Direction: With the new normal, the school year is about to start and you have
observed people who working as bartender. Since you are not allowed to go outside
and conduct an interview, answer the question below.

“ Explain the difference between physical and perpetual inventory system.”

Notes to the Teacher

This contains helpful tips or strategies that will help you in guiding the
learners.
This module also contains information that would lead to the activities
and assessment. Some activities may need your own discretion upon
checking or you may use a rubric if provided. Please review the activities
and answer keys and amend if necessary.

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 What’s New

Case Study

“How can you run out of my favorite gin?” demanded the customer. Marco, the
bartender at the Votive Restaurant, tried to explain. “We really don’t sell much of
that brand. It looks like we forgot to restock it and we ran out. I can get you another
brand.” Marco knew this guest, who was usually friendly and tipped well. But not
today. “Young man,” grumbled the customer, getting up to leave, “if I wanted bad
gin, I would have gone somewhere else. I came here because you usually have the
best bar selection in town.” “This happens way too often,” thought Marco. “Last week
we ran out of a premium vodka. And the week before that, we ran out of our most
popular draft beer.” Both times some customers got mad, and it showed up in lower
tips. Marco wondered why the manager couldn’t keep the right products in the right
amounts on hand at the right time.

1. How do you think the lack of popular beverages affects the customers and the
employees of an establishment?

2. What will happen in an establishment if it continually runs out of the beverage

brands or products its customers prefer?

What is It

PROFESSIONAL BEVERAGE MANAGEMENT PRACTICES

Managers face a variety of challenges in securing and maintaining the

products needed to serve drinks. They must consider which beverage products to
buy. They must also consider the amount of beverage products needed to meet
customer demand. After placing orders, managers must ensure that beverage
products are properly received. The receiving process entails matching the products
ordered with those delivered. It also means ensuring that the products have arrived
in good condition. After the product is delivered, managers must safely store
products, issuing them from storage as needed. The entire process of managing
beverage products in storage involves several separate tasks:

• Inventory assessment

• Purchasing

• Receiving

• Storing

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 • Issuing Beverage

Inventory Assessment Managers seeking to understand beverage purchasing,

receiving, storing, and issuing must begin by first understanding beverage inventory
procedures. Most operations will have several inventories. These inventories include
alcoholic beverages, glassware and dishes, food items, non-alcoholic beverages, and
cleaning and office supplies. An operation’s inventory accounts for both the amount
and the value of the products held in the operation. These inventory levels are also
known in the industry as the amount “on hand.” The quantity of products on hand
impacts decisions about when and how much more to purchase. Beverage managers
should assess their inventory levels on a regular basis. The frequency of inventory
assessment will vary based on the size of an operation. It will also depend on the
operation’s volume level. All beverage operations will benefit from a regular
assessment of inventory, because the inventory process allows managers to make
several key decisions related to the following:

• Maintaining product quality

• Determining what to buy

• Determining how much to buy
• Determining when to buy

• Determining costs
• Reducing theft Restaurant and foodservice professionals often use two basic
systems as they manage the products held in inventory: physical inventory
and perpetual inventory.

Physical Inventory

Managers typically assess the amount of products they have on hand by

taking a physical inventory. In a physical inventory system, managers count and
record the amounts of each product in storage. Typically, they also determine the
value of the products held in inventory. In some operations, managers require that
two people, working together, take the physical inventory.

Perpetual Inventory System

A perpetual inventory system is a continuous count of the number of items in

inventory. The amounts of product in a perpetual inventory system are not
continually determined by a physical count, but by keeping a running total of
purchases, or deposits, and usage, or withdrawals. Actual physical inventory counts
are, however, taken periodically to ensure the accuracy of the perpetual inventory
system. The key advantage of a perpetual inventory system is that the managers
always know the quantity of products that should be available.

Calculating Inventory Values Managers should also know the value of the
products they have in inventory. Recall from Exhibit 8.1 that a physical inventory
form includes a space for recording the value of products in inventory. Establishing
the value of an inventory is more complex than it first appears. That is so because
there are four basic ways that values of beverage inventories can be assigned:

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 • FIFO: The first in, first out (FIFO) method assumes that products are
withdrawn from inventory in the order in which they are received and
entered into storage. Therefore, the products that remain in storage are
judged to be the most recently purchased items. The value of inventory
becomes the cost of the most recently purchased products.

• LIFO: The last in, first out (LIFO) method assumes the reverse of the FIFO
method: The products most recently purchased are used first. The value of
inventory is represented by the unit cost of items in inventory the longest.

• Actual cost: This method of inventory valuation considers the actual price
paid for each product in inventory. The inventory value is the sum of the
actual unit costs.

• Weighted average: This method of inventory valuation considers the quantity

of each product purchased at different unit prices. The inventory value is
priced on the basis of average prices paid for each product, and the average
price is weighted according to the number of products purchased at each
price.

Managers choose one valuation system when taking a physical inventory and
should use that same system consistently. This is because there are tax implications
and restrictions on changing inventory valuation methods. Normally, the beverage
manager, working with another responsible employee, will determine the quantities
and values of inventoried items. In small operations the manager-owner, working
alone, may conduct inventory counts and assess product values.

Purchasing Beverages

Purchasing involves the series of activities that begin when beverage and
supply needs are determined and ends after these items are sold or used by the
operation. This definition is broader than the common idea that purchasing simply
means buying. Professional beverage purchasers must determine what they need to
buy, how much to buy, and when to buy it.

Buying alcoholic beverages is very different from buying food products. Unlike
with food products, government regulations often affect sources of alcoholic beverage
supply. States can be either control states or license states. In control, or monopoly,
states the state is the sole supplier of liquor. All individuals and retail establishments
must purchase liquor directly from state stores. In license states, the state frequently
licenses wholesalers, distributors, and sometimes manufacturers to sell alcoholic
beverages.

Liquor purchasing is considerably more complex in license states than in

control states. Wholesalers do not carry all brands in all quantities. Distributors
usually have exclusive sales authority over certain brands. Some manufacturers
have their own distribution networks.

These distribution networks can differ greatly. One beverage manufacturer

may have its own distribution system, while another may give exclusive territorial
rights to certain distributors. Still other manufacturers sell only to wholesalers. The

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end result of these different distribution networks is that no single supplier carries
a complete selection of all available brands and items. For this reason, purchasers
must order from several supply sources.

Receiving
Beverages does little good to make smart purchasing decisions unless there is
follow-through at the time of product receiving. It is necessary to ensure that
products that are ordered are, in fact, received. Most suppliers are ethical, but they
are all human. Human error can cause extensive and costly loses to beverage
operations that do not consistently and effectively check to ensure that there are no
problems at the time beverages are delivered. To properly prepare for receiving
beverages, managers take specific actions:

• Provide adequate space for receiving.

• Provide needed receiving equipment such as carts and dollies.

• Establish allowable delivery periods and communicate these to vendors.

• Identify and train receiving personnel.

• Develop a records system for recording the acceptance of delivered products.

The list of issues that can occur when products are received is seemingly
endless. It is important for the beverage manager to first design a receiving system
that incorporates basic control principles, and second to consistently ensure that
these procedures are practiced

Accepting Products

After the previous steps have been carefully and correctly completed, the
delivery invoice should be signed to note acceptance of the product. Typically,
beverage products become the property of the beverage operation at this point.

Sometimes delivery personnel exert pressure on receiving staff to speed up the

receiving process. It does take time to count and complete proper product inspection.
However, receiving staff must invest the time necessary to do their jobs well. It is for
this reason that managers often state that no deliveries are to be made during
specified time periods. If, for example, all employees are busy during lunch, they will
not have time to correctly complete the receiving process and so no deliveries should
be accepted then.

Moving to Storage Area(s)

After completing the receiving process, staff should move products to the
proper storage area(s). At this stage, managers should enforce several important
storage principles:

• Movement of product to inventory areas should be undertaken by beverage

employees, not by delivery personnel. There is an increased chance of theft
when non beverage delivery staff members are allowed into beverage storage
areas containing large quantities of expensive and theft-prone products.

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 • Prompt removal to storage areas reduces the chance for theft when products
are left in unprotected delivery areas.

• Spoilage becomes less of an issue when products are moved from delivery
areas to storage areas maintained at the correct storage temperatures.

Completing Receiving Tasks and Records

Large operations may use a special receiving report to provide a record of

products received. They may also create a record of product transfers from receiving
to storage areas if different staff members perform these tasks.

When products are placed in storage, many managers require staff to mark
the date of delivery on the incoming products. They also must require that products
be rotated. Rotation is the process used to ensure the use of the oldest products first
by placing all incoming products behind or under those items already in inventory.

If a perpetual inventory system is in use, these records are updated at the

time products are placed in storage. Finally, receiving records can, with invoices
attached, be used as an authorizing source for payment of the products that have
been received. These records, including the signed delivery invoice, should be
submitted to the appropriate person for payment immediately or on at least a daily
basis.

Storing Beverages

After purchasing and receiving beverage products, managers most often must
store products until the products are issued to the bar area. Just as purchasing
involves more than calling in an order and receiving requires more than putting
things in the storeroom, so must the beverage manager be concerned about proper
storage and issuing practices.

A beverage operation’s financial goals are directly affected by storage

practices. If products are stored correctly, all of the products that are purchased will
be used to generate revenue. However, if products are not properly stored they can
be broken, damaged, or stolen. Any of those outcomes will result in increased costs.
When products are purchased and paid for but then not used, more products will
have to be purchased at additional cost to generate the same amount of revenue.

Keeping Inventory Secure Security at the time of beverage storage requires

managers to address several important questions:

• How much product should be available?

• How much product is available?

• What procedures are needed to keep unauthorized personnel from gaining

access to storage areas?
Issuing Beverages

Issuing is the process of moving products from storage rooms to drink

production and service areas. The correct quantity of products must be issued to

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meet estimated guest demand. This process must be carefully controlled to minimize
product misuse and so managers can match issues of items with the amount of
revenues they should produce. Importance of Effective Issuing Should there be some
relationship between the quantity of drinks sold by the operation and the quantity of
products removed from storage areas? Of course there should be, and effective
issuing practices best ensure that this happens.

Some managers allow any employee who needs something from storage to
retrieve what is needed at any time. When this tactic is used, every employee is really
in charge of issuing. For example, bartenders obtain spirit products, dining-room
servers may retrieve wines, and other employees may be permitted to enter storage
areas to obtain additional glassware or other items. In each of these cases, the
security of products is put at risk.

What’s More

Direction: Explain the purpose of effective beverage receiving and storage practices.
Write your answer in your notebook.

Essay Rubrics
Areas of
Assessment 10 Points 7 Points 4 Points 1 Point

Presents ideas Presents ideas Ideas are

Ideas in an original in a consistent Ideas are too vague or
manner manner general unclear

Organization Strong and Organized Some No

organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows Writing shows Writing shows
strong a clear adequate little
understanding understanding understanding understanding

Mechanics Few (if any) Few errors Several errors Numerous

errors errors

TOTAL
POINTS /40 POINTS

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 What I Have Learned

Direction: Write your personal reflection about your insights and learning on this
lesson.

I have learned that

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

I have realized that

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

I will apply
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Reflection Rubrics
Areas of
Assessment 10 Points 7 Points 4 Points 1 Point

Presents ideas Presents ideas Ideas are

Ideas in an original in a consistent Ideas are too vague or
manner manner general unclear

Organization Strong and Organized Some No

organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows Writing shows Writing shows
strong a clear adequate little
understanding understanding understanding understanding

Mechanics Few (if any) Few errors Several errors Numerous

errors errors

TOTAL
POINTS /40 POINTS

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 What I Can Do

QUICK WRITES

Direction: Answer the following questions in your activity notebook.

1. Explain the difference between physical and perpetual inventory systems.

2. List the two key objectives of an effective beverage purchasing program.

Assessment

Directions: Fill in the blank (s) with the correct word or phrases. Do this activity on
your notebook.

1. _____________ is the process of moving products from storage rooms to drink

production and service areas.

2. After purchasing and receiving beverage products, _____________ most often

must store products until the products are issued to the bar area.

3. ______________ becomes less of an issue when products are moved from

delivery areas to storage areas maintained at the correct storage temperatures.

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 4. Movement of product to inventory areas should be undertaken
by___________________, not by delivery personnel.

5. Actual cost is a method of inventory valuation considers ____________ paid

for each product in inventory.

6. FIFO: The first in, first out (FIFO) method assumes that products are
withdrawn from inventory in the order in which they are received and entered
into storage. Therefore, the products that remain in storage are judged to be
the most_______________. The value of inventory becomes the cost of the most
recently purchased products.

7. Buying alcoholic beverages is __________ from buying food products.

8. Develop a _________ for recording the acceptance of delivered products.

9. LIFO: The_______, first out (LIFO) method assumes the reverse of the FIFO
method: The products most recently purchased are used first. The value of
inventory is represented by the unit cost of items in inventory the longest.

10. Prompt removal to storage areas _________ the chance for theft when
products are left in unprotected delivery areas.

Additional Activities

Direction: Due to the current crisis that we are facing right now, you may not be
able to interview a bar manager and ask him/her about storing beverages. Storing
beverages may be different than storing food, but for now you may ask your
parents/guardians if they also practice FIFO or LIFO method in terms of storing food
items/groceries. Do this activity in an essay format on your notebook.

Note: For scoring, the teacher may use the same rubric found in What I Have Learned.

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References
https://www.pearsonhighered.com/assets/samplechapter/0/1/3/2/0132741733.
pdf www.tn.gov

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For inquiries or feedback, please write or call:

Department of Education – Schools Division of Negros Oriental

Kagawasan, Avenue, Daro, Dumaguete City, Negros Oriental

Tel #: (035) 225 2376 / 541 1117

Email Address: negros.oriental@deped.gov.ph
Website: lrmds.depednodis.net