Inventory Management of Hygiene Cuisine

Introduction:

Hygiene Cuisine is a restaurant and corporate catering service provider located at Chittagong, the second busiest city and “Financial Centre’ of Bangladesh. The main business objective of Hygiene Cuisine is to provide healthy and safe meals to the corporate people working in the commercial areas of Chittagong Metropolitan. Two main business operations of Hygiene Cuisine are, delivering breakfast and lunch to almost 300 people working in different corporate offices in every workday and providing a wide range of catering services for corporate and social events. As an economic downtown of Bangladesh, Chittagong is advancing significantly. Many new restaurants and catering businesses are opening up all over the city with unique market offerings. Existing businesses like Hygiene Cuisine facing strong competition due to the changing market conditions in Chittagong. Hygiene Cuisine recognizes that in order to sustain in the changes it must be competent enough to deliver the customer demand at the right time and right price. However, in the present instability of prices for kitchen utensils, supplies and raw materials, it is not easy to maintain a good balance between price and quality of the food. One way to face this matter is to understand the both internal and external aspects of supply chain and identify the potential approach for cost reduction and better productivity. The main purpose of this report is to evaluate how the inventory management of Hygiene Cuisine is considerably related to the overall business performance.

Background of the study:

As a rising city, business challenges in in hospitality sector becoming stronger in Chittagong. In order to survive and succeed in the competitive market, Hygiene Cuisine needs to be able to prepare a well-balanced management mix. One of Hygiene Cuisine’s efforts is attempting to enhance the effectiveness and expertise of the inventory management.

The inventory management system of Hygiene Cuisine can be categorized into three phases,

1. Planning phase
2. Executing phase
3. Controlling phase

At the planning phase, the management team tries to forecast the demand and the quantity of order based on historical data and recent sales information. Except the demand for corporate or social events, all other demands of Hygiene cuisine are variable and the optimal daily customer orders are not fixed at all. Executing involves processes like, assessing the current inventory, determining the amount of incoming inventory, inventory space and the amount of inventory brought out for meeting the recent forecast. At the controlling stage, management team of Hygiene Cuisine tries ensure that, the incoming and outgoing of inventory are maintained as planned and the storing capacity is effectively utilized. However, Hygiene Cuisine needs to control and make corrective adjustments at every stage of inventory management procedure.  

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