Purchase Order Analysis and Inventory Management for Restaurants

This report provides a detailed analysis of a purchase order for an apple strudel recipe, including product specifications, quantities, and pricing. The report calculates the total cost of ingredients and also determines the quantity requirements for 350 portions based on the initial 15-portion recipe. Furthermore, the report outlines the importance of maintaining stock level procedures within a restaurant setting. It explains the steps involved in a bid system, preparation for the ordering process, and the use of a Management Information System (MIS) for food ordering procedures. The report emphasizes the need for regular review and re-ordering, including proper planning for quantity, quality, and specifications. References to relevant literature on hospitality management and supply chain management are also included, providing a comprehensive overview of the topic.

Running head: PURCHASE ORDER
PURCHASE ORDER
Name of the Student
Name of the University
Author Note

1PURCHASE ORDER
Name of the dish: Apple Strudel
Purchase Order
Product Specifications Quantity Price per unit Total
P001 Green apples 8 kgs $ 2.5 per kg $ 20.13
P002 Castor Sugar 600 gms $1 per kg $ 0.58
P003 Apricot jam 600 gms $2.5 per kg $ 1.44
P004 Ground cinnamon 12 g $1 per gm $ 11.50
P005 Sultanas 600 gms $.80 per kg $ 0.46
P006 Walnut halves 250 gms $3 per kg $ 0.69
P007 Unsalted butter 700 gms $0.8 per kg $ 0.55
P008 Cake crumbs 700 gms $.7per kg $ 0.48
P009 Cream 600ml $1per l $ 0.58
P010 Flour 7kg $0.4per kg $ 2.76
P011 Salt 100 gms $.3 per kg $ 0.03
P012 Vegetable Oil 460ml $0.2 per l $ 0.09
P013 Egg 23pcs $0.35 per piece $ 8.05
P014 Lemon juice 460ml $0.4 per l $ 0.18
P015 Water 3litres $0.15per l $ 0.45
Grand Total $ 47.96

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Working :
Product
Requirements for
15 portions Quantity
Requirements
for 350
portions per unit $ $
Green apples 0.35 kg 8.05 2.5 20.125
Castor Sugar 0.025 kg 0.575 1 0.575
Apricot jam 0.025 kg 0.575 2.5 1.4375
Ground
cinnamon 0.5 g 11.5 1 11.5
Sultanas 0.025 kg 0.575 0.8 0.46
Walnut halves 0.01 kg 0.23 3 0.69
Unsalted butter 0.03 kg 0.69 0.8 0.552
Cake crumbs 0.03 kg 0.69 0.7 0.483
Cream 0.025 l 0.575 1 0.575
0 0
Flour 0.3 kg 6.9 0.4 2.76
Salt 0.004 kg 0.092 0.3 0.0276
Vegetable Oil 0.02 l 0.46 0.2 0.092
Egg 1 pc 23 0.35 8.05
Lemon juice 0.02 l 0.46 0.4 0.184
Water 0.13 l 2.99 0.15 0.4485
47.9596
Notes:
As the quantity for fifteen serves had been provided, the quantity required for 350 words
was calculating by converting the quantity required for 15 units into 350. When 350 are divided
by 24 it gives the unit for 350. Hence the given formula was done for all the quantities proved.

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Also, some quantities were in unique quantities which have been converted to the net possible
logical quantity.
Maintaining stock level procedures for the restaurant
A restaurant is a service which needs to make sure that the different customers are
satisfied. The procedure which is followed within the restaurants to order stock is outlined in the
given section (Walker 2016). The restaurants order in a manner to ensure that the customers get
the right combination of product at the best possible price and the desired quality.
Timing also plays a key role as it helps a firm to maintain adequate inventory levels.
When the order is given in a timely manner it ensures that the lead time is sufficient and that the
restaurant never has a dearth of a certain product.
Given below, are the various perquisites as well as the proper steps which need to be
abided by.
Steps:
1. Bid system
The first component of the given procedure is the routine bids which
ensure the existence of fair competition in a business. It also allows the
restaurant to conduct fair dealings at the workplace.
2. Prospective suppliers are identified. The owner, manager and the senior
staff of the restaurant determine on which supplier should be allowed to
take part in a bid (Dopson and Hayes 2016). They take decisions based on

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criteria’s like price, specification, delivery schedule, product availability and
the quality of the product. The bid process takes place in accordance with
the minimum requirements
3. Preparation for the ordering process- It is a systemized set up which needs
preparation and efforts.
4. All the suppliers must submit their written proposal in 2 days.
5. The primary decision maker provides the vendors with a list of
requirements. They also need to be providing a list of items available for
them.
6. The receipt of the Bid Sheet is recorded in the Management Information
System of the restaurant in order to evaluate and determine which supplier
is to be approached (Kotas 2014). The owner of the organization and the
manager may take the given decision. The items which have a single
supplier , function differently from others
7. All bids are reviewed by the owner and manager of the hotels to ensure al
requirements are met with.
8. After the following is done, the orders are given and recorded in a
systematized manner to insure keeping a tract. The key controls for this
issue are accountability and consistency.

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MIS program for food ordering procedures
All the food purchases which are being made for the restaurant should be
recorded in the System so as to ensure evaluation and proper auditing on timely
basis. The log should be completed for all the items (Hugos 2018). The purchases
need to be entered in the same units throughout. To segregate the shelf, tags
using vegetables, salt, meat and seafood should be used.
Revising and re-ordering regularly
It must be noted that before placing the order, proper planning needs to be
done with respect to the quantity, future orders, quality, ingredients, specification
and others.
A bid sheet and a purchase order can be prepared for the betterment of
their firm`s accounting.

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References
Dopson, L.R. and Hayes, D.K., 2016. Managerial accounting for the hospitality industry. Wiley
Global Education.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Kotas, R., 2014. Management accounting for hotels and restaurants. Routledge.
Walker, J.R., 2016. Introduction to hospitality. Pearson Higher Ed.