CBLM - School Food Canteen Management

Competency-Based Learning Material In
SCHOOL FOOD CANTEEN MANAGEMENT

MANAGING INVENTORY CONTROL AND
PROCUREMENT
SECTOR EDUCATION
QUALIFICATION TITLE SCHOOL FOOD CANTEEN MANAGEMENT
UNIT OF COMPETENCY MANAGING INVENTORY CONTROL AND PROCUREMENT
MODULE TITLE INVENTORY AND INVENTORY CONTROL
EULOGIO “AMANG” RODRIGUEZ INSTITUTE OF SCIENCE AND TECHNOLOGY
COLLEGE OF EDUCATION
PROFESSIONAL EDUCATION
Date Developed: Document No. 001

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TLEHESFM COLLEGE OF Page
SCHOOL FOOD Developed by: EDUCATION 1
CANTEEN Department of Technology of
Pedro, Pelina, Puyales, & Livelihood Education 76
MANAGEMENT Prieto Revision # __
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HOW TO USE THIS COMPETENCY-BASED
LEARNING MATERIAL
Welcome!
The unit of competency, "MANAGING INVENTORY CONTROL AND

PROCUREMENT", is one of the competencies of MANAGING INVENTORY
CONTROL AND PROCUREMENT, a course that comprises the knowledge, skills,
and attitudes required for a Pre-Service Teacher (PST).
The CBLM, MANAGING INVENTORY CONTROL, AND PROCUREMENT contain

training materials and activities related to identifying learners’ requirements,
preparing session plans preparing basic instructional materials, and organizing
learning and teaching activities for you to complete.
In this module, you are required to go through a series of learning activities

to complete each learning outcome. In each learning outcome are Information
Sheets, Self-Checks, Operation Sheets, and Task/Job Sheets. Follow and perform
the activities on your own. If you have questions, do not hesitate to ask for
assistance from your facilitator/instructor/professor.
Remember to:
• Work through all the information and complete the activities in each section.
• Read information sheets and complete the self-check. Suggested references
are included to supplement the materials provided in this module.
• Most probably, your trainer will also be your supervisor or manager. He is there
to support you and show you the correct way to do things.
• You will be given plenty of opportunities to ask questions and practice on the
job. Make sure you practice your new skills during regular work shifts. This way, you
will improve your speed, memory, and your confidence.
• Use the Self-Checks, Operation Sheets, or Task or Job Sheets at the end of each
section to test your progress. Use the Performance Criteria Checklist or Procedural
Checklist located after the sheet to check your performance.

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• When you feel confident that you have had sufficient practice, ask your Trainer
to evaluate you. The results of your assessment will be recorded in your Progress
Chart and Accomplishment Chart.
You need to complete this module before you can perform the next module
Receiving.

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SCHOOL FOOD CANTEEN MANAGEMENT
COMPETENCY-BASED LEARNING MATERIALS
LIST OF COMPETENCIES
No. Unit of Competency Module Title
Historical highlights of the school Historical highlights of the school

1.
cafeteria cafeteria
The role of the cafeteria in the The role of the cafeteria in the
2.
educational program educational program
Cafeteria personnel: Their duties Cafeteria personnel: Their duties

3.
and functions and functions
How to organize the cafeteria How to organize the cafeteria

4.
personnel personnel
5. How to organize a large kitchen How to organize a large kitchen
6. Types of management Types of management
Rules in writing a recipe and

7. Rules in writing a recipe and menu
menu
Factors to consider in menu Factors to consider in menu

8.
planning planning
9. Standardize recipe Standardize recipe
Managing inventory control and

10. Inventory and Inventory Control
procurement

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11. Receiving
procurement

12. Storage and Issuing
procurement

13. Procurement/Purchasing (cont.)
procurement

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MODULE CONTENT
UNIT OF COMPETENCY : MANAGING INVENTORY CONTROL AND PROCUREMENT
MODULE TITLE : INVENTORY AND INVENTORY CONTROL
MODULE DESCRIPTOR: This module covers the knowledge, skills, and attitude in
Managing inventory control and procurement in Inventory and Inventory Control.
NOMINAL DURATION : 7 HOURS
LEARNING OUTCOMES:
At the end of this module you MUST be able to:
1. Describe the inventory systems and procedures used in the food service
operation
2. Calculate and Explain the importance of inventory valuation
3. Calculate and explain the meaning of the inventory turnover ratio
4. List factors in determining the amount of inventory to carry
5. List “best practices” related to managing inventory.
ASSESSMENT CRITERIA:
1. Basic Inventory procedures

2. System to track and record
3. Analyze the calculation in inventory valuation and turnover ratio
4. Familiarize with the list to determine the amount of inventory to carry
5. Reflect on the best practices in managing inventory

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LEARNING OUTCOME 1
INVENTORY SYSTEMS AND PROCEDURES IN
FOODSERVICE OPERATIONS
CONTENTS:
1. Basic Inventory Procedures

2. Setting Up Systems to Track and Record Inventory
3. Incoming Inventory, Invoices, and;
4. Outgoing Inventory
5. Requisitions
6. Inventory Record Keeping
7. Computerized Inventory Control
8. Pricing and Costing for Physical Inventory
6. Analyzing different things to consider in inventory management.

7. Importance of taking inventory on foodservice operations.
8. Conducting and testing different inventory methods.
9. Advantages of taking Inventory Management.
CONDITION:
Learners must be provided with the following:

1. GOOGLE MEET
2. EQUIPMENT
- Computer
- Cp
3. TOOLS, ACCESSORIES, AND SUPPLIES
- PowerPoint
-PDF
4. TRAINING/CLASS MATERIALS
- Learning Packages, Bond Paper, Ball pens, Videos, Pictures

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ASSESSMENT METHOD:
1. Written Test
LEARNING EXPERIENCES
LEARNING OUTCOME 1 : INVENTORY SYSTEMS AND PROCEDURES IN

FOODSERVICE OPERATIONS
1. Learning Activities Special Instructions

1. Read Information After reading the learner is encouraged
Sheet 1.1 to answer Self-Check 1.1
BASIC INVENTORY AND
INVENTORY CONTROL
2. Answer Self-Check 1.1 Compare answers with the answer key.
You are required to get all answers
correct. If not, read the information
sheets again to answer all questions
correctly.
3. Read Information After reading the learner is encouraged
Sheet 1.2 to answer Self-Check 2.1-2
SETTING UP SYSTEMS TO TRACK AND
RECORD INVENTORY PROCEDURES

correctly.
5. Perform Job Sheet Evaluate your work using the
Performance Criteria.
Present your work to your trainer for
evaluation and recording.

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INFORMATION SHEET 1.1
INVENTORY AND INVENTORY CONTROL
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to understand

the concept of inventory management, the different procedures for taking
inventory, advantages of taking proper inventory management in food service
operations.
INVENTORY AND INVENTORY CONTROL
An inventory is everything that is found within your establishment. Produce,

dry stores, pots, and pans, uniforms, liquor, linens, or anything that costs money to
the business should be counted as part of the inventory. Kitchen items should be
counted separately from the front of house and bar inventory and so forth.
Managing inventory is like checking a bank account. Just as you are interested in
how much money you have in the bank and whether that money is paying you
enough in interest, the manager should be interested in the value of the supplies
in the storeroom and the kitchen. Regardless of the size of your operation, the
principles of inventory control are the same. In larger operations, there will be
more people and sometimes even whole teams involved with the various steps,
and in a small operation, all responsibility for managing the inventory may fall on
one or two key people.

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Effective inventory control can be broken down into a few important steps:
1. Set up systems to track and record inventory.

2. Develop specifications and procedures for ordering and purchasing.
3. Develop standards and procedures to efficiently receive deliveries.
4. Determine the frequency and processes for reconciling inventory
5. Analyze inventory data and determine any areas for improvement.
BENEFITS OF INVENTORY CONTROL AND MANAGEMENT
Using a stock control system helps enhance business practices within quick-
service restaurants, catering companies, and any other type of food and
beverage business. As mentioned previously, an inventory tracking system helps
food and beverage businesses effectively manage waste, increase productivity,
and control cash flow.
1. Food Inventory for loss prevention
- Keeping track of usage, dollar value, and overall inventory levels

are essential for restaurants to understand where the money they
invest in food inventory goes. Equipped with that information,
restaurants can improve the costs of goods sold and maximize
profits on each sale.
2. Preventing food waste
- Adopting a food inventory management system can help you

maintain your profit margins Along with labor costs, replenishing
your inventory is the most significant expense your business faces.

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By implementing a stock control system, you can reduce how
much food that has the business wastes.
3. Over-ordering
- An inefficient or improperly managed inventory system, which

can easily lead to chefs ordering more products than actually
necessary. Performing and tracking inventory regularly will keep
food waste down and save you money on ordering food that you
just don’t need.
4. Spoilage
- Even if you aren’t over-ordering the product, you run the risk of
spoilage. If you don’t carefully inspect the food coming in, you
might accept a product that is already turning bad. Make sure to
clearly label all incoming products with best-by dates. Labeling
enables you to install the first-in, first-out (FIFO) storage method to
reduce the amount of spoiled food you keep on hand.
5. Over-production
- Tracking sales gives you a chance to periodically review your

menu, create more efficient batching levels, and even eliminate
dishes that aren’t moving fast enough. Try planning your staff meal
around your extra ingredients to save the sunk costs of prep work.
6. Poor portion control
- Effective portion control means you can stretch your food

budget further without sacrificing quality. Standardizing your
measurements for each dish can prevent too much food from
reaching the trash when a guest doesn’t feel like packing
leftovers.

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Watch this video: https://www.youtube.com/watch?v=62a-usxGpx8
Watch this video: https://www.youtube.com/watch?v=rIJwIrGRYAk

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SETTING UP SYSTEMS TO TRACK AND RECORD
INVENTORY PROCEDURES
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to understand

the concept of tracking inventory procedures, the different procedures for taking
inventory, advantages of taking proper inventory management in foodservice
operations.
SETTING UP SYSTEMS TO TRACK AND RECORD INVENTORY
One of the reasons you take inventory is to determine food costs and to
work out cost percentages. Several procedures simplify finding the value of goods
in storage. These techniques are based on keeping good records of how much
supplies cost and when supplies were purchased. The simplest method for
tracking inventory is using a spreadsheet. A simple spreadsheet might list all of the
products that are regularly purchased, with the current prices and the numbers
on hand at the last inventory count. The prices can be updated regularly as
invoices are processed for payment, and a schedule can be set to count the
product on hand.

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Incoming Inventory
The primary reason for establishing a consistent method for accepting

ordered goods is to ensure that the establishment receives exactly what has been
ordered. Errors frequently occur, and unless the quantity and quality of the items
delivered are carefully checked against what was ordered, substantial losses can
take place. When receiving procedures are carefully performed, mistakes that
could cost the restaurant time and money are avoided. In addition, an effective
receiving method encourages honesty on the part of suppliers and delivery
people.
Invoices
The most important document

in determining if the goods received
are the goods ordered is the invoice.
An invoice is an itemized list of the
goods or products delivered to a food
preparation premise. An invoice
shows the quantity, quality, price per
pound or unit, and, in some cases, the
complete extension of the cost
chargeable. Only by carefully
comparing and checking can you be
sure that the information on the
invoice tallies with the products
received. This comparison may
require that items be weighed and/or
counted.

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Outgoing Inventory
When a supply leaves the storeroom or cooler, a record must be kept to

track where it has gone. In most small operations, the supplies go directly to the
kitchen where they are used to produce the menu items. In an ideal world,
accurate records of incoming and
outgoing supplies are kept, so knowing
what is on hand is a simple matter of
subtraction. Unfortunately, systems
aren’t always that simple.
In a smaller operation, knowing

what has arrived and what gets used
every day can easily be reconciled by
doing a regular count of inventory. In
larger operations and hotels, the
storage rooms and coolers may be on a
different floor than the kitchen, and therefore a system is needed that requires
each department and the kitchens to requisition food from the storeroom or
purchasing department, much like a small restaurant would do directly from the
supplier. In this model, the hotel would purchase all of the food and keep it in a
central storage area, and individual departments would then “order” their food
from the storerooms.
Requisitions
A food requisition form is used to

ensure that if a certain company or
organization needs a specific type of
food delivered, they’re able to request
them. These are especially important to
businesses that focus on the food
industry, such as restaurants or even
hotels. To control inventory and to
determine daily menu costs in a larger

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operation, it is necessary to set up a requisition procedure where anything
transferred from storage to the kitchen is done by a request in writing. The
requisition form should include the name and quantity of the items needed by
the kitchen. These forms often have space for the storeroom clerk or whoever
handles the storeroom inventory to enter the unit price and total cost of each
requested item. In an efficiently run operation, separate requisition forms should
be used by serving personnel to replace table supplies such as sugar, salt, and
pepper. However, often personnel resist using requisition forms because they find
it much easier and quicker to simply enter the storage room and grab what is
needed, but this practice leaves no record and makes accurate record-keeping
impossible. To reduce the possibility of this occurring, the storage area should be
secure with only a few people having the right to enter the rooms, storage
freezers, or storage refrigerators.
Inventory Record Keeping

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There are two basic record-
keeping methods to track inventory.
The first is taking perpetual
inventory. A perpetual inventory is
simply a running balance of what is
on hand. Perpetual inventory is best
done by keeping records for each
product that is in storage.
When more of the product is
received, the number of cans or
items is recorded and added to the
inventory on hand; when some of
the product is requisitioned, the
number going out is recorded and
the balance is reduced. In addition,
the perpetual inventory form can
indicate when the product should
be reordered (the reorder point)
and how much of the product
should ideally be on hand at a given time (par stock).
In small operations, a perpetual inventory is usually only kept for expensive

items as the time (and cost) of keeping up the records can be substantial.
The second inventory record-keeping system is taking a physical inventory.

A physical inventory requires that all items in storage be counted periodically. To
be an effective control, physical inventory should be taken at least monthly. The
inventory records are kept in a spreadsheet or in another system reserved for that
purpose.

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Computerized Inventory Control System
A computerized inventory system enables a company to monitor inventory

levels in real-time throughout the day. Also known as inventory management
software, businesses can stay updated with inventory orders, counts and sales.
Having access to information such as
ordering history and the best price paid is just
one of the benefits of these systems. They can
also help the purchaser predict demand
levels throughout the year. These programs in
many cases are also integrated with
the point-of-sale (POS) system used to track
sales, and can even remove an item from a computerized inventory list when the
waiter registers the sale of any menu item on the restaurant terminal.

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Pricing and Costing Physical Inventory
There are several different ways

to view the cost of the stock on the
shelves if the actual cost of each item
is difficult to determine. Most
commonly, the last price paid for the
product is used to determine the value
of the stock on hand. For example, if
canned pineapple last cost $2.60 a
can and there are 25 cans on hand,
the total value of the pineapple is
assumed to be $65 (25 x $2.60) even
though not all of the cans may have
been bought at $2.60 per can.
Another costing method assumes the

stock has rotated properly and is known as the FIFO (first-in-first-out) system. Then,
if records have been kept up-to-date, it is possible to more accurately determine
the value of the stock on hand.
Costing Prepared or Processed Items

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When you are building your
inventory forms, be sure to calculate the
costs of any processed items. For instance,
sauces and stocks that you make from raw
ingredients need to be costed accurately
and recorded on the spreadsheet along
with purchased products so that when you
are counting your inventory you can
reflect the value of all supplies on the
premises that have not been sold.
Watch this video: https://www.youtube.com/watch?v=LfmzIxwKlA8
SELF-CHECK 1.1-2
Name: __________________________________ Date: _____________ Score: ____

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Grade and Section: ________________________ Teacher: ___________________
I.MULTIPLE CHOICE
Directions: Read each of the following questions carefully and choose the letter
of the correct answer. Write your answer in your test notebook.
1. An ______________ is everything that is found within your establishment.

Produce, dry stores, pots, and pans, uniforms, liquor, linens, or anything that
costs money to the business should be counted as part of the ______________.
a. Materials
b. Storage
c. Money
d. Inventory
2. An _____________ shows the quantity, quality, price per pound or unit, and, in
some cases, the complete extension of the cost chargeable.
a. Invoice
b. Receipt
c. Storage
d. List
3. A ______________ form is used to ensure that if a certain company or

organization needs a specific type of food delivered, they’re able to request
them.
a. Grocery receipt
b. food requisition
c. market
d. school grade

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4. A __________________ is simply a running balance of what is on hand.
a. perpetual inventory
b. outgoing inventory
c. in and out inventory
d. food inventory
5. A system that enables a company to monitor inventory levels in real-time

throughout the day by the use of digital spreadsheets and inventory systems.
a. Outgoing inventory
b. Manual inventory
c. Computerized inventory
d. Perpetual inventory
II. ENUMERATION
6 – 10. Give 5 benefits of inventory control management (5 points).

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ANSWER KEYS
SELF–CHECK #1
I. Multiple Choice
1. d. inventory
2. a. invoice
3. b. food requisition
4. a. perpetual inventory
5. c. computerized inventory
II. Enumeration
6–10
• Food inventory for loss prevention

• Preventing food waste
• Over-ordering
• Spoilage
• Over-production
• Poor portion control

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JOB SHEET #1
Title: OBSERVING INVENTORY SYSTEMS AT FOOD ESTABLISHMENTS
Performance Objective: “Interview”. The objective of this activity is to know if

the students understand and know how inventory systems work in food services
operations.
Supplies & Materials: Camera or Phone, Notebook, ball pen, Microsoft

PowerPoint, and voice recorder
Equipment: Phone, Laptop, PC
Steps/Procedures:
1. Find any food establishments like small restaurants or fast food chains near
your area.
2. Find a person/staff that you can interview about the following questions:
a. How can you manage your raw material stocks in your business?
b. What are the things you consider in listing your stocks properly?
c. What type of inventory system do you use in listing your stocks?
3. Note their answers and take a video or a voice record as proof and
present the output of your work in class using Microsoft PowerPoint.

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PERFORMANCE CRITERIA CHECKLIST FOR JOB SHEET LO1
IDENTIFYING TRAINEES’ CHARACTERISTICS
CRITERIA
Did you…. YES NO
1. Does the information in the module pass your
expectations regarding Inventory Management
and its procedures?
2. The topic is very well easy to understand and adapt
to.
3. Did all your questions answer in the module?
4. Did you fully understand the importance of taking
inventory in business?
5. Does this topic help you to gain more knowledge
and apply this topic in the future?

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LEARNING OUTCOME 2
CALCULATE AND EXPLAIN THE IMPORTANCE OF
INVENTORY VALUATION
CONTENTS:
9. Inventory valuation
10. Inventory valuation importance
11. The different inventory valuation methods
12. Calculation of inventory valuation
13. Inventory valuation method should I use for business
1. Determine the Inventory valuation

2. Familiarize with the importance of inventory valuation
3. Analyze the calculation
4. Reflect on the method used
CONDITION:

1. GOOGLE MEET
2. EQUIPMENT
- Computer
- Cp
- PowerPoint
-PDF
ASSESSMENT METHOD:
2. Written Test

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LEARNING OUTCOME 2: CALCULATE AND EXPLAIN THE IMPORTANCE OF.
INVENTORY VALUATION
Learning Activities Special Instructions

7. Read Information Sheet 2.1 After reading the learner is encouraged
CALCULATE AND EXPLAIN THE to answer Self-Check 2.1
IMPORTANCE OF INVENTORY
VALUATION
correctly.

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CALCULATE AND EXPLAIN THE IMPORTANCE OF
INVENTORY VALUATION
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to explain the
importance of inventory valuation and understand the calculations.
What is inventory valuation?
Inventory valuation is an accounting practice that is followed by

companies to find out the value of unsold inventory stock at the time they are
preparing their financial statements. Inventory stock is an asset for an
organization, and to record it in the balance sheet, it needs to have a financial
value. This value can help you determine your inventory turnover ratio, which in
turn will help you to plan your purchasing decisions.
Why is inventory valuation important?
Identifying unsold items is just one step in inventory valuation. You also need
a rate that you can multiply by the quantity to arrive at a final value. You may
have paid different prices for these items throughout the year, so you need to
choose a technique to calculate a common rate.
To give you an example, if you run a shoe business and you’re left with 50
pairs of shoes at the end of the year, then you need to calculate their financial
value and record it in your balance sheet. Let’s look at how and why you’ll
calculate the value. Continuing our previous example, let’s look at your
purchases for a particular type of sneakers during the year:

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At the end of the year, you have 50 pairs of unsold items, but due to the
fluctuations in the price of the product, you’re facing a dilemma as to which rate
you should use. Therefore, you need to choose a technique. In the following
section, we will look at the different techniques of inventory valuation and share
some pointers which can help you choose the right technique for your business.
What are the different inventory valuation methods?

There are three methods for inventory valuation: FIFO (First In, First Out),
LIFO (Last In, First Out), and WAC (Weighted Average Cost).

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In FIFO, you assume that the first items purchased are the first to leave the
warehouse. In other words, whenever you make a sale, under FIFO, the items will
be subtracted from the first list of products that entered your store or warehouse.
Watch this Video:

https://www.youtube.com/watch?v=IqBhf-1hzbk
In LIFO, you make the opposite assumption: that the last items that enter your
store are the first ones to leave.
Watch this Video:

https://www.youtube.com/watch?v=f5Pv2ZjLFWY&feature=youtu.be
The WAC method uses the item’s average cost throughout the year. The
average cost per unit is calculated by dividing the total cost by the total
number of units purchased during the year.
Watch this Video:

https://www.youtube.com/watch?v=34zPN7RUuwg

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Watch this Video:
https://www.youtube.com/watch?v=cBR5ZoYkjtg
How do I value inventory using inventory valuation?

Let’s continue our above example and find out how each of these
techniques calculates the value of your unsold stock.
From this table, you can see how the value of your unsold inventory at the
end of the year will differ based on the valuation method that you
choose. However, there are two caveats to keep in mind:
In the above example, the FIFO value is more

than the LIFO value because you paid more per unit at the end of the year.
However, this is not always the case. If your purchase price drops throughout the

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year, the FIFO value will be less than the LIFO value and the WAC value will
change accordingly.
If the quantity of items unsold at the end of the year is greater than the
first or last order, then the calculation will be slightly different. For example, if you
have 150 unsold items at the end of the year, then the calculations will look like
this:
FIFO: Items bought first will be sold first
Use the newest purchase rate for the number of items included in the newest
order, then use the previous rate for the remaining items.
90 * 35 = 3150 (All the items purchased in December)
60 * 31 = 1860 (Remaining items to be valued using the rate from October)

Total 5010
LIFO: Items bought last will be sold first

Use the oldest purchase rate for the number of items included in the oldest
order, then use the next rate for the remaining items.
100 * 30 = 3000 (All the items purchased in January)

50 * 31 = 1550 (Remaining items to be valued using the rate from March)
Total 4550
WAC: Average cost per unit

150 * 31.5 = 4725 (The average price per unit will remain the same as there is NO
change in rate and quantity purchased)
Here’s a table that summarizes the above working –

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Which inventory valuation method should I use for my business?
There is no straight answer to this question. Your inventory valuation

technique depends on the market conditions and your financial goals for your
organization. Here are a few scenarios which can help you to pin down the best
inventory valuation technique for your business.
1. Applying for a loan for business expansion
If you’re planning to apply for a loan, then you will need to keep your stock
as collateral. In such cases, it is preferable if the value of your stock is high because
a higher valuation will give more assurance to the lender. If prices are increasing
throughout the year, a FIFO inventory valuation technique will give you a higher
value for closing inventory. If prices are decreasing, a LIFO technique will give you
a higher value. The value of the closing inventory in your balance sheet is one of
the factors used by financial institutions before approving a loan to a company,
so the technique that gives you the highest inventory value will be the best for
your company.

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2. Attracting investors and keeping shareholders happy
A company with a high-profit margin can get a lot of attention from

potential investors and keep its existing shareholders happy. So if you’re looking
for a new funding opportunity or if you want to please your shareholders with
good earnings, then FIFO valuation will be beneficial under inflationary market
conditions. Similarly, the LIFO valuation will be a better choice when prices are
falling.
To make it clearer, let’s look at the same illustration, but with a new assumption
that the sales price/unit is 20000.
Because the FIFO method results in a higher gross profit, it will make the
company more attractive to investors.
3. Saving taxes
If you’re looking for ways to cut down on your tax liability, then your
inventory valuation technique can help. Assuming an inflationary situation
again, a LIFO valuation technique will save you some money. To show how to
let’s refer to the above example again:

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You can see that the tax liability is the highest when you follow the FIFO
valuation technique because the profit is also the highest. Under LIFO, the
liability is lower because the profit margin is lower. However, keep in mind that
we’re assuming the prices will go up during the year. During a depression, this
scenario might play out differently.
Summing it up
The concept of inventory valuation can seem a little heavy at first.

However, once we break it down and demonstrate each technique, it gets a
lot simpler. That’s exactly what we tried to achieve in this article. If you got slightly
overwhelmed, though, here’s a quick recap of what you need to know:
• Inventory valuation is the monetary value of your unsold stock.

• You need to choose an inventory valuation technique because
the price you pay for items from your vendor might change throughout
the year.
• There are three techniques of inventory valuation: FIFO (First In, First Out),
LIFO (Last In, First Out), and WAC (Weighted Average Cost).

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• Choosing an inventory valuation technique depends a lot on your
financial goals and market conditions. Just don’t change valuation
techniques too often, because it can complicate your bookkeeping
and raise suspicions.
SELF-CHECK 2.1
Name: __________________________________ Date: _____________ Score: ____
Direction: Write T if the underline statement is correct and F if False.
1. Inventory valuation is the monetary value of your sold stock.
2. FIFO (First In, First Out).
3. WAC (Weighted Average Change).
4. Inventory valuation is an accounting practice that is followed by
companies to find out the price of unsold inventory stock at the time they
are preparing their financial statements.
5. In LIFO, you make the opposite assumption: that the last items that enter
your store are the first ones to leave.

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ANSWER KEY 2.1
1. False
2. True
3. False
4. False
5. True

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JOB SHEET 2
Title: CALCULATE AND EXPLAIN THE IMPORTANCE OF INVENTORY VALUATION.
Performance Objective: “Computation”. Compute the Total Cost, FIFO, LIFO,

WAC.
The objective of this activity is to know if the students understand how to
compute the inventory valuation.
Supplies & Materials: Microsoft word, pen, paper, calculator.
Steps/Procedures:
4. Ready the calculator.

5. Start to Multiply the purchase and rate and put in the total cost.
6. In FIFO, multiply the item unsold and the rate of the recent price.
7. In LIFO, multiply the item unsold and the oldest price rate.
8. In WAC, add the total cost and divided it by the item purchased, and
with the result the item unsold times with it.

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CRITERIA
Did you…. YES NO
6. Does the instruction are easy to understand?
7. The topic is very well easy to understand and adapt.
8. Did all of the calculations have your answer?
9. Did you enjoy calculating the Inventory Valuation?
10. Does this topic can be used in business?

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LEARNING OUTCOME 3
CALCULATE AND EXPLAIN THE MEANING OF THE
INVENTORY TURNOVER RATIO
CONTENTS:
1. Inventory turnover Ratio

2. Inventory Turnover Ratio Formula
1. Determine the Inventory Turnover Ratio

2. Analyze the calculation of the Turnover Ratio
CONDITION:
1. GOOGLE MEET
2. EQUIPMENT
- Computer
- Cp
- PowerPoint
-PDF
ASSESSMENT METHOD:
1. Written Test

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LEARNING OUTCOME 3 : CALCULATE AND EXPLAIN THE MEANING OF THE

CALCULATE AND EXPLAIN THE to answer Self-Check 3.1
MEANING OF THE INVENTORY
TURNOVER RATIO
correctly.
After doing all activities of this LO, you are
ready to proceed to the next LO on
preparing session plans.

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CALCULATE AND EXPLAIN THE MEANING OF THE
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to define the
inventory turnover ratio and understand the calculations.
Calculate and explain the meaning of the inventory turnover ratio
What is the Inventory Turnover Ratio?

The inventory turnover ratio, also known as the stock turnover ratio, is an
efficiency ratio that measures how efficiently inventory is managed. The inventory
turnover ratio formula is equal to the cost of goods sold divided by total or
average inventory to show how many times inventory is “turned” or sold during a
period. The ratio can be used to determine if there are excessive inventory levels
compared to sales.
Inventory Turnover Ratio Formula
The formula for calculating the ratio is as follows:
Where:
• Cost of goods sold is the cost attributed to the production of the goods that
are sold by a company over a certain period. The cost of goods sold by a
company can be found on the company’s income statement.

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• Average inventory is the mean value of inventory throughout a certain
period. Note: an analyst may use either average or end-of-period inventory
values.
Practical Example of Inventory Turnover Ratio
For example, Walmart Inc. (WMT) and Target Corporation reported the following
figures in their financial statements:
(In thousand) Walmart Inc. (WMT)
Inventory (2016) 44,469,000,000
Inventory (2017) 43,046,000,000
Average Inventory 43,757,500,000
COGS (2017) 361,256,001,000
Inventory Turnover Ratio 8.26
(In thousand) Target (TGT)
Inventory (2016) 8,601,000,000
Inventory (2017) 8,309,000,000
Average Inventory 8,455,000,000
COGS (2017) 46,872,000,000
Inventory Turnover Ratio 5.54
The ratio for Walmart is calculated as follows:

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Likewise, the ratio for Target is calculated as follows:
By comparing the inventory turnover ratios of Walmart and Target, two

companies that operate mainly in the retail industry, we can see that Walmart
sells its inventory 8.26x over one year compared to Target’s 5.54x. It implies that
Walmart can more efficiently sell the inventory it buys. In addition, it may show
that Walmart is not overspending on inventory purchases and is not incurring high
storage and holding costs compared to Target.
Interpretation of Inventory Turnover Ratio

turnover ratio is an efficiency ratio that measures how well a company can
manage its inventory. It is important to achieve a high ratio, as higher turnover
rates reduce storage and other holding costs. It is vital to compare the ratios
between companies operating in the same industry and not for companies
operating in different industries. The benchmark ratio varies greatly depending on
the industry.
A low turnover implies that a company’s sales are poor, it is carrying too
much inventory, or experiencing poor inventory management. Unsold inventory
can face significant risks from fluctuating market prices and obsolescence.
Depending on the industry that the company operates in, inventory can
help determine its liquidity. For example, inventory is one of the biggest assets that
retailers report. If a retail company reports a low inventory turnover ratio, the

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inventory may be obsolete for the company, resulting in lost sales and additional
holding costs.
Watch this Video:
https://www.youtube.com/watch?v=TDgxlBQMBpk
Key Takeaways
• Inventory turnover ratio is an efficiency ratio that measures how efficiently
inventory is managed.
• The ratio should only be compared for companies operating in the same
industry, as the ratio varies greatly depending on the industry.
• A high ratio is always favorable, as it indicates reduced storage and other
holding costs.
• A low ratio implies poor sales, excess inventory, or inefficient inventory
management.
• Depending on the industry, the ratio can be used to determine a
company’s liquidity.

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SELF-CHECK 3.1
Name: __________________________________ Date: _____________ Score: ____
Direction: Write T if the underline word is TRUE and if FALSE, write the correct word.
1. Low turnover implies that a company’s sales are high, it is carrying too much
inventory, or experiencing poor inventory management.
2. It is important to achieve a high ratio, as higher turnover rates grow storage
and other holding costs.
3. The inventory turnover ratio, also known as the irregular turnover ratio, is an
efficiency ratio that measures how efficiently inventory is managed.
4. The ratio can be used to determine if there are excessive inventory levels
compared to sales.
5. Depending on the industry that the company operates in, inventory can
help determine its liquidity.

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ANSWER KEY 3.1
1. Poor
2. Reduce
3. Stock
4. T
5. T

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JOB SHEET LO-3
Title: CALCULATE AND EXPLAIN THE MEANING OF INVENTORY TURNOVER
RATIO
Performance Objective:
“Solve the Turn Over Ratio” The objective of this activity is to measure the
learner’s understanding of solving the Inventory turnover ratio.
Supplies & Materials: Microsoft word, pen, paper
Steps/Procedure:
1. Ready the materials you need to write your Answer. (Microsoft word,
paper)
2. Use the turnover ratio formula to answer this.
3. After finishing the Activity pass it to the Teacher.

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CRITERIA
Did you…. YES NO
1. Did you use the formula to calculate the turnover
ratio?
2. Did you apply your knowledge?
3. Do you enjoy solving?
4. Are you sure about your answer?
5. Did you think the turnover ratio is an efficiency ratio
that measures how well a company can manage its
inventory?

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LEARNING OUTCOME 4
LIST FACTORS IN DETERMINING THE AMOUNT OF
INVENTORY TO CARRY
Contents:
1. Key considerations for carrying inventory

2. Five rules for determining how much inventory to carry
Assessment Criteria:
1. Enumerate all the factors that need to consider

2. Take notes of the five rules for determining how much inventory to carry
3. Applying the benefits of increasing or reducing orders
4. Advice on how to innovate your inventory
CONDITION:

1. GOOGLE MEET
2. EQUIPMENT
- Computer
- Cp
- PowerPoint
-PDF
ASSESSMENT METHOD:
1. Written Test

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LEARNING OUTCOME 4 : LIST FACTORS IN DETERMINING THE AMOUNT

OF INVENTORY TO CARRY

List “best practices” related to to answer 4.1
managing inventory
correctly. Self-Check 4.1
Perform Job Sheet Evaluate your work using the

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LIST FACTORS IN DETERMINING THE AMOUNT OF
INVENTORY TO CARRY
After reading this information sheet, you should be able to enumerate all of
the factors to consider and remember the five rules for determining the amount
of inventory to carry.
Factors Affecting Inventory Levels
There are a variety of factors that

affect how much inventory should be kept
on hand some of which were mentioned
previously in the forecasting chapter. The
menu, the frequency of deliveries and lead
time needed from order to delivery, the
amount of storage space, including cold
storage, the location and size of the
operation are all examples of factors to
consider. Some smaller operations may need
to carry higher inventory levels to reduce the
number of deliveries so that each delivery is
large enough to make it worthwhile for a supplier to run a truck to the operation
or to avoid shipping costs.
Some operations can operate with a “just in time” inventory – based on the
working stock needed for the menu. Many operations will be graded on how
much inventory they are carrying. Even though the inventory has value, tying up
your money in inventory is not wise. It does not gain interest, as your money would
if it were invested in other places. The quality of many products will degrade over
time, and you may be forced to throw them away. Too much product can also
lead to increased theft. Employees will be more tempted if they see that we are
carrying an excess of something.

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Key considerations for carrying inventory
As any retailer knows, the cost of inventory involves much more than just
the price per unit. Purchasing, transporting, and holding inventory all have
separate (and variable) costs.
These are the critical aspects of product inventory to keep in mind when
forecasting how much stock to carry:
Cost of inventory
This seems simple, but the cost of the products you sell will be the biggest factor
in determining how much inventory you’re able to purchase at a time.
Storage space, seasonality, and shelf life

Holding inventory is a major expense for many retailers, especially for inventory
that requires climate control or special storage conditions.
The cost of storage space also factors into how much inventory you’re able to
carry. Depending on the availability, cost, and convenience of storage in your
area, you might need to strategize against your products’ shelf life. For instance,
the inventory at the farmer’s market has a different turnover rate than an
appliance store.
Knowing how much it costs you to pay for storage space and how long your
products can be stored will help you make orders as far in advance as possible.
Bulk orders vs. batch orders

Next, think about how many products you can realistically sell and decide
whether to order your products in bulk or by batch.
Smaller orders might incur an upcharge from suppliers. But if you aren’t confident
you’ll sell enough units of a product to justify a bulk order, it’s usually worth it to
only buy what you know you can sell, rather than being stuck with excess. And
depending on your products, you might save on orders by reducing the number
of variations or sizes you offer. That’ll also make taking inventory easier, since there
will be fewer stock-keeping units or SKUs, to keep track of.

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Boutique and specialty retailers might specifically focus on small-batch products,
which makes bulk ordering difficult or impossible to do. If this is the case, you might
be able to save on ordering by forming relationships with your suppliers, even if
you can’t pre-order or bulk order a specific product.
Five rules for determining how much inventory to carry
Taking inventory shouldn’t just be an

annual, quarterly, or even monthly
activity. Get in the habit of regularly
checking on inventory and adjusting
forecasts throughout the month. And if
you use the same unit of measurement
every time, you’ll be able to calculate
estimates with greater accuracy and
consistency.
With reliable cost estimates, you can
reap the benefits of increasing or reducing orders on products appropriately and
optimize your entire inventory management process.
1. Count something every day
Taking inventory every day might seem like an unnecessary annoyance.

But there are a few good reasons for working inventory into your daily routine.
For starters, product discrepancies and shrinkage can slip through the cracks if
you’re only doing inventory on an infrequent or irregular basis. Taking stock of
products every day — or week, if that’s more doable for you — helps you identify
recurring trends. That might make it easier to predict how you should order.
A product that consistently sells out is probably already on your radar. But paying
close attention to subtle patterns can help you identify where you can adjust
product orders or expand selection. Inventory management systems (IMS) can
be useful for tracking and reporting on sales and automating things like stock
monitoring and order fulfillment. A software solution makes sense if you sell on
multiple online platforms because you can manage each channel through one
consolidated inventory.

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Until your business is simply too large to run without automation, good records and
regular inventory checks will keep you informed about your inventory and ahead
of demand.
2. Know your industry
Different types of products have different rules of supply and demand.

Fashion, for example, is a tough business for getting rid of old inventory — and
even with the same product, different sizes and colors might sell out completely
or not at all.
Changing trends in your industry or fluctuating commodities prices might prevent
you from planning inventory orders for more than a few months. In that case, pay
attention to the sales volume of different types of products, even if you aren’t re-
ordering the same items.
3. Risk vs. reward
If you’re considering ordering new or additional inventory, consider

whether the potential rewards (aka profit) outweigh the risk (of investing in items
you won’t end up selling).
That’s the attitude Jean Grant, the purchasing manager for U.K.-based online
retailer Find Me a Gift, takes when she’s restocking her business’s inventory, which
includes thousands of products.
Decide first: Risk or reward? Which
is most important to your business:
limiting your risk in terms of stock
investment or capitalizing on the
potential rewards of purchasing
stock in larger quantities? Is
secured, lower-priced stock-
holding most important to your
business or is it minimizing the investment and maximizing your flexibility to adapt
to changing demands?
Investing in more inventory might mean bigger profits but only if you can sell those
products. To make an informed decision about additional quantities or new
products, it’s important to determine how much you can afford to spend.

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4. Innovate your inventory
Finding a new way to finance your inventory might mean finding a new
inventory source altogether.
For example, innovating inventory with 3-D printing is one-way entrepreneurs
avoid traditional supply chains. Handmade, recycled and vintage products are
all alternative sources to a wholesale merchandiser and might even make your
products more interesting to consumers.
5. Crunch the numbers
Yes, you can calculate how much inventory to carry — you just need to use
the right formula.
By using a formula to calculate inventory turnover, you’ll get consistent

estimates for how much you need to purchase and how often. Feel free to use
different calculations to get an idea of how different variables could influence
your costs. Just keep in mind that calculations only reflect the factors that you
input, not a complete picture of your inventory costs.
Start by experimenting with the three following inventory calculations:
Inventory turnover ratio: One of the most common ways to calculate the
inventory turnover ratio is to look at sales (or you can use the cost of goods sold)
divided by average inventory.
Simply put, this shows how quickly you sell out of your stock. But this
calculation can also indicate sales strength, alert you to excess inventory if the
ratio is low or if you’re under-ordering if you have a high turnover ratio.
You can compare this number to national averages to get a general idea
of inventory turnover for your industry. Consistent turnover of full-price inventory
indicates that it might be time to expand your offerings.
Inventory value (retail method): You can use the retail method of
calculating inventory to know how much your inventory is worth. This calculation
converts the retail value of your inventory to a cost value. This approach doesn’t

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require you to take physical inventory and can be useful for financial projections
and accounting.
Days sales of inventory: The number of days it takes your inventory to sell —
measured as DSI —shows how long it takes a business to turn its inventory (like
inventory turnover ratio). This calculation is particularly relevant in the context of
your industry because turnover varies for different products. For example, ice
cream has a lower days inventory than freezers.
To get this value, simply divide Inventory by the Cost of Sales, multiplied by
365 (days). For more help calculating your DSI and cash conversion cycle, you
can check out an online calculator.
Watch this Video:

https://www.youtube.com/watch?v=1Z6MYQVMlyY

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SELF-CHECK 4.1
Fill in the blank
1. Some smaller operations may need to carry higher inventory levels to

reduce the number of deliveries so that each delivery is large enough to
make it worthwhile for a supplier to run a truck to the operation or to avoid
_____________.
2. Some operations can operate with a _____________ inventory – based on
the working stock needed for the menu.
3. Many operations will be graded on how much inventory they are _______.
4. Too much ______ can also lead to increased theft.
5. Employees will be more tempted if they see that we are carrying an
________ of something.

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ANSWER KEY 4.1
1. shipping costs
2. just in time
3. Carrying
4. Product
5. Excess

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JOB SHEET-4
Title: List factors in determining the amount of inventory to carry

Activity Objectives: “Word Hunt Puzzle” The objective of this activity is to
see if you already know all of the factors that must be considered when
choosing how much inventory to keep on hand.
Supplies & Materials: Microsoft word, pen or highlighters, paper
Steps/Procedures:
1. Ready your pen or highlighters
2. Think of words to look for in the puzzle
3. Search or scan for Multiple Words at a Time
4. Widen Your Focus
5. Look for the Final Few Letters
6. Mark the words using your pen or highlighter

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PERFORMANCE CRITERIA CHECKLIST FOR JOB SHEET
CRITERIA
Did you…. YES NO
11. Is it simple to follow the instructions?
12. The topic is simple to comprehend and adjust to.
13. Do you already know all the factors that need to be
considered?
14. Did you enjoy finding words in puzzles?
15. Is it critical that you understand the factors to
consider when choosing the amount of inventory to
carry?

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LEARNING OUTCOME 5
LIST “BEST PRACTICES” RELATED TO MANAGING
INVENTORY
CONTENTS:
1. 10 Best Practices for Managing Restaurant Inventory
1. Explain what are the best practices in managing inventory

2. Apply this list to managing inventory
3. Measure performance in managing inventory
4. Advice on how to control inventory
CONDITION:

1. GOOGLE MEET
2. EQUIPMENT
- Computer
- Cellphone
- PowerPoint
-PDF
ASSESSMENT METHOD:
1. Written Test

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LEARNING OUTCOME 5 : LIST “BEST PRACTICES” RELATED TO MANAGING

INVENTORY

List “best practices” related to to answer 5.1
managing inventory
correctly. Self-Check 5.1
Perform Job Sheet Evaluate your work using the

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LIST “BEST PRACTICES” RELATED TO MANAGING
INVENTORY
Learning Objective:
After reading this INFORMATION SHEET, YOU MUST be able to take the
inventory before and after opening/closed the restaurant.
10 Best Practices for Managing Restaurant Inventory
1. 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. The only way
to get accurate inventory numbers is by consistent counting. We recommend
taking a physical count every two weeks if possible. What is the purpose of taking
inventory and how often should it be done? By checking your stock periodically,
you can be sure your inventory matches what is in your records. You'll also be able
to identify any problems in your record-keeping procedures. As time-consuming
and burdensome as they may be, physical inventory counts are essential to the
success of any retailer.

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2. TAKE INVENTORY AFTER THE RESTAURANT HAS CLOSED, OR BEFORE IS OPENS
You cannot take accurate inventory while goods are being sold. Whatever
time you pick, stick with it. If you always take inventory on Tuesdays, but sometimes
you do it at night and sometimes in the morning, there will be fluctuations in a
week to week results.
3. TAKE INVENTORY BEFORE A NEW SHIPMENT ARRIVES AND THEN ADD THE NEW
STOCK TO YOUR COUNTS
You cannot take accurate inventory while goods are being sold. Whatever
time you pick, stick with it. If you always take inventory on Tuesdays, but sometimes
you do it at night and sometimes in the morning, there will be fluctuations in a
week to week results.

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4. 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.
Lists on how to organize stock inventory:

1. Communicate with Employees
2. Optimize the Warehouse Layout
3. Storage Solutions
4. Picking
5. Receiving
6. Review
5. Use Inventory Count Sheets
Have one for daily, one for weekly, and one for monthly counts or whatever
periods you use and standardize the items included and the unit pounds, number
of items, boxes, etc. each item is tracked in. Changes in what items are tracked
can cause large fluctuations in recorded inventory. Count inventory. One person
on each team counts a specific item within a bin location, and then the other
person marks the bin location, item description, part number, quantity, and unit
of measure on a count tag. The team affixes the original copy of the tag to the
inventory item and retains the copy.

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6. When taking inventory make part of the practice ensuring that items are
being used on a First in First Out (FIFO) basis
Older goods should be rotated to the front of shelves so they are used first.
Additionally, try to keep the number of items you have on hand as low as possible
to reduce theft and spoilage. First In, First Out (FIFO) is an accounting method in
which assets purchased or acquired first are disposed of first. FIFO assumes that
the remaining inventory consists of items purchased last. An alternative to FIFO,
LIFO is an accounting method in which assets purchased or acquired last are
disposed of first.
7. 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.

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8. Use the same staff 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. This is to avoid cross-contamination of one package to another
especially if it’s in a food product.
9. Standardize what your unit cost is.
The price of many items (like ground beef) changes week to week.
Responsible for the count is the Finance or Business Manager of the unit is
responsible for ensuring the annual physical inventory is properly performed,
inventory records reflect actual quantities on hand, inventory valuation methods
are appropriate, and adjustments are entered into the business's accounting
system on a timely basis.

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10. Use the latest price paid as the standard
It is the easiest to find and remember because you’ll need to watch over
the prices that will go up or down.
Watch This:
https://www.youtube.com/watch?v=hOiL_cqBZ2U

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SELF-CHECK 5.1
Name: __________________________________ Date: _____________ Score: ____

Enumeration: Give at least 5 best practices in managing
-
-
-
-
-

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ANSWER KEY 5.1
- Take inventory frequently

- Take inventory after the restaurant has closed, or before it opens
- 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 Inventory Count Sheets
- When taking inventory, make part of the practice ensuring that items are
being used on a First In, First Out (FIFO) basis
- Use two people to take inventory
- Use the same staff to take inventory
- Standardize what your unit cost is
- Use the latest price paid as the standard

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JOB SHEET # 5
Title: LIST “BEST PRACTICES” RELATED TO MANAGING INVENTORY
Performance Objective: (demonstration) This performance will apply their

knowledge in demonstrating proper practices in managing inventory.
The purpose of this activity is to know how important to manage inventory.
Supplies & Materials: Paper, Ball pen, MS Word
Equipment: Phone, PC/ Laptop
Steps/Procedure:
1. Get ready yourself.
2. Make sure that you’ll do the practices properly.
3. Explain the importance of every practice.
4. The teacher will grade your performance.

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CRITERIA
Did you…. YES NO
16. Did this topic help you to be more effective in
managing inventory?
17. Adapt the list of practices?
18. Get knowledge on how important practices is?
19. Does this topic can be used in any inventory?

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REFERENCES
A. E-BOOKS
• BC Articulation Committee. (2015). Basic Inventory Procedures. In

Pressbooks Edition 1.0. Basic Kitchen and Food Service Management.
Retrieved March 31, 2022, at
https://opentextbc.ca/basickitchenandfoodservicemanagement/chapte
r/basic-inventory-procedures/#fig2
B. ONLINE WEBSITES:
• Business Tips. (2017, October 21). Food Inventory Management: What it is

and How to do it well. Retrieved from https://dearsystems.com/food-
inventory-management/
• Lightspeed. (2022, March 16). Food Inventory: The Restaurant Inventory

Management Checklist. Retrieved from
https://www.lightspeedhq.com/blog/restaurant-food-inventory-
management/
• Ruhana A. (n.d). Receiving, Storage, and Inventory Control in Foodservice

Systems. Academia. Retrieved from
https://www.academia.edu/5166378/Receiving_Storage_and_Inventory_
Control_in_Foodservice_Systems
• What is Inventory Valuation? | Importance, Methods, and Examples.

Retrieved online at: https://www.zoho.com/inventory/guides/inventory-
valuation-methods-fifo-lifo-wac.html

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• Inventory Turnover Ratio. Retrieved online at:
https://corporatefinanceinstitute.com/resources/knowledge/finance/inve
ntory-turnover-ratio/
• Lesson 3.1: Managing Inventory Control and Procurement. Retrieved at:

https://workforce.libretexts.org/Bookshelves/Food_Production_and_Servic
e/Introduction_to
Food_Production_and_Service_(Egan)/03%3A_Managing_Procurement_a
nd_Food_Production/3.01%3A_Managing_Inventory_Control_and_Procure
ment
• How Much Inventory Should You Carry? How to Know. Retrieved at:
https://www.nerdwallet.com/article/small-business/how-much-inventory-
should-i-carry
• List “best practices” related to managing inventory. Retrieved online

at:https://sirvo.com/management/inventory-best-
practices/?fbclid=IwAR3mG0CTclCB_Peo592uUDULmeU--
9lb8f0GlZycoB3pzMe_kr2R4YZWrpE#:~:text=%2010%20Best%20Practices%20
For%20Managing%20Restaurant%20Inventory,areas%20before%20taking%
20inventory.%20.%20Throw...%20More%20
• Take inventory after the restaurant has closed, or before it opens. Retrieved
online at:https://www.touchbistro.com/wp-
content/uploads/2021/01/how-to-do-inventory-in-a-restaurant-inset-2.jpg
• Take inventory before a new shipment arrives and then add the new stock
to your counts Retrieved online
at:https://www.netsuite.com/portal/assets/img/business-
articles/inventory-management/social-restaurant-inventory-
management.jpg

March 2022 EARIST
BTLED-HE-2
• Use Inventory Count Sheets Retrieved online
at:https://i0.wp.com/post.healthline.com/wp-
content/uploads/2020/08/grocery-shopping-food-vegetables-healthy-
eating-732x549-thumbnail-732x549.jpg?w=756&h=567
• When taking inventory, make part of the practice ensuring that items are
being used on a First In, First Out (FIFO) basis. Retrieved online
at: https://www.vendhq.com/blog/wp-content/uploads/2020/04/iStock-
1133945516.jpg
• Use two people to make an inventory. Retrieved online at:

https://www.harmony.co.id/wp-content/uploads/2021/09/Apa-Itu-
Inventory-Control.jpg
• Use the same staff to take inventory Retrieve at:

https://p6x6j4d5.rocketcdn.me/wp-content/uploads/2018/04/inventory-
stock-with-two-men.jpg
Standardize what your unit cost is. Retrieved online at: https://assets-
global.website-
files.com/600fe6e1ff56087409a9f096/62288cc102f99618fbbdc9be_Inve
ntory.Managemnt.Guide.v2.jpg

March 2022 EARIST
BTLED-HE-2

CBLM - School Food Canteen Management

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Competency-Based Learning Material In

SCHOOL FOOD CANTEEN MANAGEMENT

Date Developed: Document No. 001

The unit of competency, "MANAGING INVENTORY CONTROL AND

The CBLM, MANAGING INVENTORY CONTROL, AND PROCUREMENT contain

In this module, you are required to go through a series of learning activities

Date Developed: Document No. 001

Date Developed: Document No. 001

Historical highlights of the school Historical highlights of the school

Cafeteria personnel: Their duties Cafeteria personnel: Their duties

How to organize the cafeteria How to organize the cafeteria

5. How to organize a large kitchen How to organize a large kitchen

6. Types of management Types of management

Rules in writing a recipe and

Factors to consider in menu Factors to consider in menu

9. Standardize recipe Standardize recipe

Managing inventory control and

Date Developed: Document No. 001

Managing inventory control and

Managing inventory control and

Date Developed: Document No. 001

MODULE TITLE : INVENTORY AND INVENTORY CONTROL

NOMINAL DURATION : 7 HOURS

At the end of this module you MUST be able to:

1. Basic Inventory procedures

Date Developed: Document No. 001

1. Basic Inventory Procedures

6. Analyzing different things to consider in inventory management.

Learners must be provided with the following:

Date Developed: Document No. 001

LEARNING OUTCOME 1 : INVENTORY SYSTEMS AND PROCEDURES IN

1. Learning Activities Special Instructions

4. Answer Self-Check 1.2 Compare answers with the answer key.

Date Developed: Document No. 001

After reading this INFORMATION SHEET, YOU MUST be able to understand

INVENTORY AND INVENTORY CONTROL

An inventory is everything that is found within your establishment. Produce,

Date Developed: Document No. 001

1. Set up systems to track and record inventory.

BENEFITS OF INVENTORY CONTROL AND MANAGEMENT

1. Food Inventory for loss prevention

- Keeping track of usage, dollar value, and overall inventory levels

2. Preventing food waste

- Adopting a food inventory management system can help you

Date Developed: Document No. 001

- An inefficient or improperly managed inventory system, which

- Tracking sales gives you a chance to periodically review your

6. Poor portion control

- Effective portion control means you can stretch your food

Date Developed: Document No. 001

Watch this video: https://www.youtube.com/watch?v=rIJwIrGRYAk

Date Developed: Document No. 001

After reading this INFORMATION SHEET, YOU MUST be able to understand

SETTING UP SYSTEMS TO TRACK AND RECORD INVENTORY

Date Developed: Document No. 001

The primary reason for establishing a consistent method for accepting

The most important document