Discussion of Diploma in hospitality

Running head: DISCUSSION OF DIPLOMA IN HOSPITALITY
Discussion of Diploma in hospitality
Name of the Student:
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DISCUSSION OF DIPLOMA IN HOSPITALITY1
1. Stock purchasing and control organisation.
As a manger of a five star hotel, the stock of the organisation can be
managed with the help of effective costs reduction and rise in the sales. In order
to establish a proper stock purchasing and control organization, there needs to be
a proper estimation cost of holding the stocks the few things that need to be kept
in mind are storing, coverage, keeping the records of accurate tracking and the
control of stock to avoid theft. The standard records must be updated and the
Financial Policies and Procedures must be ensured.1 The stock control policy and
the stock organisation to be established must make sure of the identification of
the stock and the process of buying the stocks must be tightened. Accurate stock
records must be maintained and they need to be matched with the regular physical
count. There should be proper negotiation of the deals with the suppliers and the
stock buying decisions must not be driven by any sort of discount prices. The
impact of the marketing and the promotion must be considered and the stock
policies must be reviewed. If the stocks move quickly, there will be more sales.2
Thus the customer delivery must also be considered. Finally the stock turn rate
must be calculated, in order to determining the sold good’s cost and determining
the cost of in hand stocks the stock purchasing organization must be established.
2. How to determine stock requirements?
In order to determine the stock requirements of any business organisation,
the maximum lead time must be calculated along with the minimum inventory
1 Geva, Tomer, and Jacob Zahavi. "Empirical evaluation of an automated intraday stock
recommendation system incorporating both market data and textual news." Decision support
systems 57 (2014): 212-223.
2 Liu, Chunling, et al. "Across-chain purchasing decision model and algorithm for cluster supply chain
under limited over-stock contract." Comput. Integr. Manuf. Syst 19 (2013): 1115-1126.