2. Typical Storage Management Procedures15
Typical Storage Management Procedures

3. You Should Be Able To: Explain the objectives of storage.
Describe the factors needed to achieve storage objectives.
Illustrate the process of managing inventory and storage facilities.
Generate a stock requisition and describe its use.
List important storage-management practices that small hospitality operators should follow.

4. Objectives of Storage Management
Storage management attempts to prevent loss of merchandise due to
Theft
Pilferage
Spoilage

5. Achieving Storage Objectives
Adequate space
5 square feet per dining seat (on average)
15 square feet per hotel room (on average)
10-12 percent of the total property (on average)

6. Achieving Storage Objectives (cont.)
Adequate temperature and humidity
Meat, poultry, fish, processed crustaceans, dairy, reduced oxygen packaged foods, some foods prepared in-house: 41ºF or lower
Live shellfish, eggs: 45ºF or lower
Fruits and vegetables: 41ºF to 70ºF
Dry and canned food: 50ºF to 70ºF
Freezer storage: 0ºF to 10ºF

7. Achieving Storage Objectives (cont.)
Adequate equipment
Shelving/racks
Trucks
Covered containers
Proximity
Access to maintenance

8. Achieving Storage Objectives (cont.)
Proper security
Competent personnel
Sufficient time
Storeroom regulations
Who is allowed to enter
Procedures for obtaining items

9. Managing Storage Facilities
Inventory classification and organization
Usage rates
Emergency orders
Surpluses
Stock disposal
Stock transfers

10. Managing Storage Facilities (cont.)
Perpetual inventory
Physical inventory
Product cost calculations
Restricted access to storage facilities
Stock requisitions

11. Managing Storage Facilities (cont.)
Inventory Shortcuts
Count everything in the warehouse, add predetermined percentage for amount in process
Count only full-case equivalents
Combine ordering with inventory taking
Use a tape recorder to recite counts; transcribe the information
Use a handheld computer device to encode inventories

12. Managing Storage Facilities (cont.)
Exercising control over the stock
Allow only a few persons to withdraw items
Maintain small stock so pilferage is more noticeable
Use small working storerooms and keep large storerooms locked
Use stock requisition system
Issue stock only at certain times during the day
Issue exact amounts of ingredients for one day or one shift

13. Value Analysis: Storage-Management
Theoretically can capture 2% savings
Small operations have options
Use one-stop shopping
Owner-manager or assistant receives and inspects all incoming merchandise
Send expensive items to the main storage area and less expensive items to production
Owner-manager issues par stocks of expensive items at shift beginnings
Lock main storage facilities

14. Value Analysis: Storage-Management (cont.)
Small operations have options (cont.)
Lock main storage facilities
Owner-manager retrieves expensive items as needed
Owner-manager restocks unused expensive items
Conduct critical-item inventory