FOOD QUANTITY STANDARDS -

SPECIFICATIONS FOR
PURCHASING
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Presented by Mahkota Management
PRIVATE PROPERTY
This manual contains private and/or proprietary information
which may not be used or disclosed outside Mahkota
Management except pursuant to a written agreement
 POLICY
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To establish guidelines for the control of quantities of
food requested for purchase so that quality can be
maintained and excessive inventory levels avoided.
 PROCEDURES
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Perishable Food Items
This category includes any food item in which the quality can be expected to deteriorate after 2 to 3
days.

These items should always be requested to be purchased to meet immediate requirements. That is,
sufficient quantities for 2 to 3 days supply.

Amounts to be requested to be purchased should be ordered based on the following:

- Average Consumption Rates
- Stock on Hand
- Forecasted Restaurant Covers
- Advance Information on Forthcoming Banquets and/or other Events

Note that prolonged storage of perishable items will increase the likelihood of quality deterioration
through spoilage, decreases the yield and consequently raises the real cost of the usable product. Thus,
the need to maintain consistent control over inventory levels to prevent the purchase of unnecessary
quantities.
 PROCEDURES
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Groceries

The purchase of groceries and of other less perishable items for which demand is fairly
constant is handled in a different manner than for perishable goods.

since these food items can be stored for longer periods of time, the most effective method
of maintaining stocks is to establish maximum and minimum stock levels for each item
used by:
- Reviewing records of past consumption
- Determining quantities necessary to meet normal requirements

A Maximum Level should be sufficient to ensure adequate supply for a pre-determined

period (i.e. 4 weeks supply).

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 PROCEDURES
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Groceries

A Minimum Level, often the reorder level, is calculated based on:

- The Lead Time or the time from the date the order is placed and the date of delivery, so that the necessary
quantity is maintained until the arrival of the new delivery.
- The Normal Rate of Usage
- The Frequency of Orders

Maximum and Minimum Levels must be flexible and reviewed constantly and revised if necessary, as soon as
there is an indication of a change in either demand for the item, or supply of the item, or other factors affecting
lead time.

In addition to considering the above, it is generally acceptable to add a 50% safety factor to allow for increase
in consumption levels of the item. The most accurate way to determine the appropriate safety factor is
however, to analyze past history and to identify peak consumption.

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 PROCEDURES
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Groceries

In addition to the above-mentioned factors to review when ordering grocery items, it is also
important to note any up-coming functions or banquets affecting the quantity and the timing for
the demand for any particular food item.

Some exceptions to established stock levels could also be determined by such factors as supplier
discounts and set minimum orders, for instance:

- When the supplier maintains a minimum order policy and no other source is available.

- When it is determined that to take advantage of a quantity discount offer would more than offset the
additional inventory carrying costs and result in overall savings.

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Thank You