HTM 2030 Lecture Notes - Lecture 8: Perpetual Inventory, Purchase Order, Beverage Industry

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: Iain Murray

Document Summary

For non perishable goods, there are two basic methods to order goods. Orders based on regular recurring dates with a consistent time interval in between. Amt required for upcoming period amt presently on hand + desired ending inventory = amt to order. Amount needed on hand to last until next delivery arrives. Changes (increases) in business levels and product demands. Nb = normal usage = daily usage x days for delivery. Figure out product (cid:498)needs(cid:499) for a period requires a tracking tool. Bin cards are a simple method to show how much inventory is demanded over time. Good records = ability to make good decision. Using the periodic order method, determine order amount. Dei = normal usage x days of delivery + safety. Amnt required fofr upcoming period amny presently on hand + desired ending. 4. 5 cases 5 cases. inventory = amnt to order. Dei = 18 cans expected to be busy month ; 50% increase in demand.