Set age in the Food Inventory in a few clicks

Aug 6th, 2022
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How to set age in the Food Inventory

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Proper inventory management helps restaurants know how much food and other stock - like spices, cooking equipment and employee uniforms - to have on hand to meet demand. Restaurants also face the challenge of turning over perishable items before they spoil. Effective inventory management for restaurants can help, minimizing food waste, while also decreasing costs of goods sold, improving vendor management, building a better customer experience and increasing profits. Lets take a look at an example. This is Megan. Megan runs Basecamp Brew, a cafe that serves beverages and sandwiches to campers, hikers and locals. But Megans running into some problems She cant get a handle on menu costs or keep the ingredients for her famous breakfast sandwiches in stock, leading to dissatisfied diners, lost sales and inadequate profits. Megan needs a better way to manage her inventory. There are some best practices she can follow to do so: First, Megan should organize her inve

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To find inventory age for your own products, follow the formula: average inventory age = [average inventory cost cost of goods sold] x 365. In general, its recommended that retailers confirm this figure with supplemental inventory metrics (such as gross profit margin).
For example, if a companys average inventory cost is $100,000 and its COGS for that inventory is $500,000, the average inventory age would be 73 days. The higher your average inventory age is, the longer it takes to sell through product, and the higher your holding costs will be.
Calculation of inventory age can be done with Inventory Age (Days) = Current Date - Date Added. As simple as that. This is usually used at Warehouse or store level.
The average age of Company As inventory is calculated by dividing the average cost of inventory by the COGS and then multiplying the product by 365 days.
An example of an ageing schedule might be a report that lists all outstanding invoices or accounts receivable and categorises them based on the number of overdue days. Age buckets include current, 1-30 days past due; 31-60 days past due; and over 60 days past due.
A good inventory age is generally considered 60 to 90 days from the receipt date, though this varies based on the shelf-life of the products, industry norms, and the average turnover rate.
Inventory aging or aging inventory describes stocks that barely move. In theory, the ideal inventory age can be a week, a month, or even up to 90 days from the suppliers delivery date. Conversely, most companies consider items that sit for more than six months or 180 days to be dead stocks.
The process involves categorizing inventory items based on their age or the length of time they have been in the inventory. This enables businesses to identify slow-moving or obsolete inventory that may be tying up valuable resources or space in the warehouse.

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