Inventory management and aggregate planning
This week we had discussed in class Inventory management and aggregate planning in an inventory. In economics, we learn that aggregate demand represents all final goods and services. This is important to understand when dealing with inventory and how production can run smoothly in the most ethical way possible. An existing service that I will expound upon will be a high-quality restaurant.
In a restaurant inventory for food and beverage is vital for success. Incorporating the systems for counting in inventory; food is being checked for quality daily and this would be a perpetual and periodic system of counting. The reason for this is because the food is perishable and it becomes hard to know who will eat what. Most of the time storage is used for items that have already arrived for the week. The ordering consists of good management when knowing what is running low and what needs to be ordered. Aggregate planning is used often and becomes easier the longer you have experience with food and beverage (Stevenson, 2018). Sometimes on holidays when an order is not enough managers find themselves spending more money out of their own pocket to keep customers happy. This is referred to as shortage costs and that leads to the costs per unit to increase (Stevenson, 2018). Another important approach to inventory in the restaurant is cycling products by using First In Last Out (FIFO). This keeps quality control in check at high-quality restaurants and should be done at all food service locations.
Scripture touches on the accountability that should be present in our lives. When it comes to inventory in any business being held accountable shows integrity on the company’s behalf. Having an employee being held for their mistake will better a company’s culture. In Proverbs, there are tons of references touching on seeking wisdom from elders, and being held accountable. For example, “A rebuke impresses a man of discernment more than one hundred lashes a fool ( Pro. 17:10).” Out of many other wise sayings, this is a principle that inventory requires of us. To complete our excellence in service we must start by being honest.
Stevenson, W. J. (2018). Operations Management (15th Ed.). Boston: McGraw Hill
Solution preview for the order on inventory management and aggregate planning