commissary
Describe Robatelli's conversion processes—that is, what gets converted, how is it done, and where are the underlying processes performed [at which Robatelli's location(s)]? What procedures and internal controls would a person recommend to Robatelli's to minimize the risk of lost sales due to stock-outs (i.e., running out of ingredients) and the resulting idle time that may be incurred while employees are awaiting delivery from the commissary?
1. Inventory Management:
- Implement a robust inventory management system to track ingredient levels in real-time.
- Set reorder points and safety stock levels to ensure that you order ingredients before they run out.
2. Supplier Relationships:
- Maintain strong relationships with suppliers to ensure timely and reliable deliveries.
- Consider having backup suppliers in case of emergencies.
3. Forecasting and Demand Planning:
- Analyze historical sales data to forecast future demand accurately.
- Adjust ordering quantities based on factors like seasonality and special events.
4. JIT (Just-in-Time) Inventory:
- Utilize a JIT inventory system to minimize storage costs and reduce the risk of overstocking or stock-outs.
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