A. How do you manage you food supply, 1) within the refrigerator and 2) cabinets

Question

A. How do you manage you food supply, 1) within the refrigerator and 2) cabinets?
B. How does your frequency of resupply (go to the store) impact inventory.
C. How does shelf like impact your inventory process. Be detailed in all responses for full credit. This means you need to think about what impacts the decisions.Also, go and look at your "inventory".
D. How do you store it? Is it organized and easy to access? Do you monitor shelf life and how?
E. Lastly how does this relate to a company managing inventory?

Explanation / Answer

Answer of A' Food is required daily for consumption. It is not possible to go to shop for buying as and when it is required. Suppose a guest has come in your house at night. You require food for him. all shops are closed. You can satisfy the requirement only when some foods are stored in your house.Thus maintaiing a minimum quatity of food in house is a must for smooth and uninterrupted daily activities.

Next question is where it will be stored. It should be managed in a appropriate place where it is appropriate for storing. If you keep food in your cabinet under lock and key it will get damaged. It is particularly applicable for food items like meat, vegetables, fish, cooked food etc. These items have short life. These are perishable in nature. They require appropriate hygenic space for storing. Refrigerator is best suited for this purpose. It is designed specifically for this purpose. It has cooling facilities which will keep food fresh. Cabinet is designed for storing durable items like cloth, utensils, ornaments, book etc. So you have to manage your food supply within the refrigerator.

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B. Frequecy of resupply of food item has a significant impact on the quantity of food stored. You can maintain less amount of food in your house in understated situation:

1. You are residing in a locality very close to marketplace. You can go there with minimum time ad cost. All your requiremets are available there in plety.

2. You have eough spare time daily in your hand to visit shop and buy required food.

3. You are facing shortage of money. Somehow you have to satisfy your daily requirement. Thus surplus icome available for maintaining adequate stock of food in your hand is not possible.

4. Foods are highly perishable. So storing in bulk is not possible.

On the other hand your food storing will be high if opposite features are observed.

Frequency of resuuply will affect your food storing requirement. If you go to stores on regular basis, then storage requirement will be less. Hence a refrigerator with low capacity will serve your purpose. But where frequency of going to store is less, you have to maintain a huge stock of food. So you require larger storing capacity. It will increase the cost of storage since high capacity refrigerator is more costly. Also bulk storing will increase electricity consumption bill, possibility of food become unusable.

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C. Food items are of different types. You cannot maintain them in a mixed manner. If you keep meat and vegetable together, then vegetable may become uncookable. Also you cannot determine the quantity of an item available if they are not separately. Note that for storing egg rack in the refrigerator are specially designed, so that it cannot get damaged. So shelf i refrigerator is very crucial. It will help you to maintai stock of food in a systmatic manner.

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D. Previous point clearly indicates that storing should be done in a systematic manner. If they are not separately and systematically arranged user will not get them when it is needed. Also quantity in hand and quantity required to buy is properly assessable if storing is maintained in an organized manner. Also it is required for maintainig proper quality of stored food.

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E. Above concepts of storing food is equally applicable in a company.

1.A company has to maintai inventory so that it can carry on its production without any interruption. If production is stopped due to shortage of inputs the cost of production will increase. Also it is not desirable to maintain huge stock which is not required. Remember a large portion of working capital is used for maintaining inventory. Interest is paid on such capital. So large stock will mean increase in funding cost and decrease in profit. So compay has to decide the maximum quantity of an item to be maintained in hand. Also it will decide minimum quantity which will ensure smooth flow of production. Also reorder level should be fixed so that next purchase can be made in time. Thus level fixation in a scietific manner is a must.

2. Next firm has to decide the frequency of purchase of items. High frequency of purchase will mean less amount of inventory. Just opposite for low frequency. Remember both high storing and higher frequency of purchase involve cost. Storing cost includes cost of storage space, employees remmuneration, possibility of increase in wastage etc. Also frequent purchasing will increase purchase order processing cost, transportation and material hendling cost etc. Thus firm will fix up a quantity where sum of carryig stock in stock and ordering cost can be minimized. This quantity is known as economic ordering quantity.

3. After getting an idea on quantity and varieties of items firm has to arrange for their appropriate storig. Space should be adequate, reqired facilities will be there and it will be arranged in such a manner that systematic and organised way of storig is possible.

4. Finally adequate records should be maintained so that quantity is readily available and possibility of theft, pilferage ca be minimzed. Records like bin cards, stores ledger etc are maintained on regular bais.

Thus storing of food and ivetontory in a factory have similarity.

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