Cracker Barrel Inventory
Many companies have inventory in which they must manage in order to supply the demand of the consumer or customer. Our project is based on the research of Inventory management and how it is applied or used in the Cracker Barrel Restaurant. In this project, we have elected to explain and determine how the company develops its inventory plans to support the products or services they provide to the consumer. On our field research we asked a series of questions to one of Cracker Barrels' Associate Managers Tom Kelly trying to get a general idea of how or what methods they use to manage the company's inventory. There are many functions that can accommodate the functions of inventory, Cracker Barrel Restaurant maintains four types of inventories:
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Cracker Barrel uses a system that they call "The Par Level" system. They have a set par level of five this means that if the inventory is lower than the set level of five they reorder that product. Cracker Barrel has a physical count of inventory once a week, and once a week they have a truck that delivers their inventory. Inventory is counted each week and the way they reorder inventory for example, when the inventory is at level three of the par level system they will reorder a certain amount of that inventory in order to reach that par five level again. While reordering inventory, they must remember that they need an inventory level that last for at least a week and a half. Now that we have discussed how the restaurant decides how much to order, and when to order we can explain how the gift shop of the restaurant orders their inventory. They use the simple inventory models assume that receipt of an order is instantaneous. In other words, when the retail shop sells an item they will place an order when the inventory is sold for that particular item and when the item is sold the order will be received and the item will be order immediately. The time between placement and receipt time is called spot auto for the restaurants but we call it lead time, or delivery time. The gift shop also uses the Quantity discount Models. The gift shop sells things to customers on a discount if they buy a large quantity. Computer manages through using this system in the gift shop inventory for each it that is sold the computer reorders that item for the inventory. So at the end of the month the retail shop has a physical count of inventory and if they count things missing they will know if some has been stealing. There is another part of inventory that is important to the main area of the restaurant and that is food
Cracker Barrel uses a system that they call "The Par Level" system. They have a set par level of five this means that if the inventory is lower than the set level of five they reorder that product. Cracker Barrel has a physical count of inventory once a week, and once a week they have a truck that delivers their inventory. Inventory is counted each week and the way they reorder inventory for example, when the inventory is at level three of the par level system they will reorder a certain amount of that inventory in order to reach that par five level again. While reordering inventory, they must remember that they need an inventory level that last for at least a week and a half. Now that we have discussed how the restaurant decides how much to order, and when to order we can explain how the gift shop of the restaurant orders their inventory. They use the simple inventory models assume that receipt of an order is instantaneous. In other words, when the retail shop sells an item they will place an order when the inventory is sold for that particular item and when the item is sold the order will be received and the item will be order immediately. The time between placement and receipt time is called spot auto for the restaurants but we call it lead time, or delivery time. The gift shop also uses the Quantity discount Models. The gift shop sells things to customers on a discount if they buy a large quantity. Computer manages through using this system in the gift shop inventory for each it that is sold the computer reorders that item for the inventory. So at the end of the month the retail shop has a physical count of inventory and if they count things missing they will know if some has been stealing. There is another part of inventory that is important to the main area of the restaurant and that is food