Measuring and optimizing inventory management processes for Restaurant X
Koço, Megi (2018)
Avaa tiedosto
Lataukset:
Koço, Megi
Haaga-Helia ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018120319543
https://urn.fi/URN:NBN:fi:amk-2018120319543
Tiivistelmä
Inventory is one of the largest accounts in the balance sheet of a product-based company. Inefficiencies may occur in any process and induce high costs to the company. Ensuring that efficient processes are associated with it, is value-adding to the business.
This thesis aims to determine the cost of the inventory management processes in Restaurant X and suggest improvements on existing inefficiencies. The commissioning company is a franchisee in the restaurant industry. Only Restaurant X’s processes are studied.
The research focuses on the managerial accounting perspective of the topic. Five interviews and on-the field observations are the qualitative analysis methods. A process flowchart is created. Numerical data analysis is the quantitative analysis method.
In the case company, the inventory process includes materials planning and forecasting, purchasing, receiving and storing ordered goods, picking inventory from storage and moving it into production. Inventory can become obsolete at any point. Inventory is physically counted at regular intervals. The inventory processes and their costs can be divided to ordering and holding costs.
Inventory-related financial figures for the past two years are analyzed. Total inventory-related costs are determined for both time frames. Inventory management efficiency measurements and an analysis model are applied.
In 2018, total inventory costs for Restaurant X increased by 5% while sales grew by 9%. Inventory salaries and obsolescence represent the highest costs. The analysis model proves that, in 2018, the process efficiency increased by 8% from 2017. However, the value is below the industry average.
This thesis aims to determine the cost of the inventory management processes in Restaurant X and suggest improvements on existing inefficiencies. The commissioning company is a franchisee in the restaurant industry. Only Restaurant X’s processes are studied.
The research focuses on the managerial accounting perspective of the topic. Five interviews and on-the field observations are the qualitative analysis methods. A process flowchart is created. Numerical data analysis is the quantitative analysis method.
In the case company, the inventory process includes materials planning and forecasting, purchasing, receiving and storing ordered goods, picking inventory from storage and moving it into production. Inventory can become obsolete at any point. Inventory is physically counted at regular intervals. The inventory processes and their costs can be divided to ordering and holding costs.
Inventory-related financial figures for the past two years are analyzed. Total inventory-related costs are determined for both time frames. Inventory management efficiency measurements and an analysis model are applied.
In 2018, total inventory costs for Restaurant X increased by 5% while sales grew by 9%. Inventory salaries and obsolescence represent the highest costs. The analysis model proves that, in 2018, the process efficiency increased by 8% from 2017. However, the value is below the industry average.