Inventory variance

Ideally, when you do a stock count, the number of stock items should be the same as the number registered in your inventory system. If these numbers don’t match, we call it inventory variance.  Inventory variance is the difference between the theoretical inventory (the inventory of stock in the books) and the actual inventory (the […]

Inventory Turnover Ratio (ITR)

The Inventory Turnover Ratio (ITR) is an important metric used by businesses as a gauge of their inventory health. It measures the rate at which a company’s entire inventory stock has been sold, utilized and replenished over a certain period of time. A high ITR indicates high sales activity, suggesting that the company’s inventory is […]

Internal transfers

Internal transfers are essential components of restaurant inventory management, which includes all activities that increase or decrease the amount of inventory. Internal transfers refer to the process of moving inventory between different locations within a multi-unit restaurant or hotel chain. There are two types of internal transfers: incoming (when items are obtained from another location) […]