Cellar Mangement

Question 1

Progressive Markup

Answer 1

avg markup = 3

• Cost| Markup| Selling price| Gross profit
• Regulate gap, smoothen prices
• Higher price, lower the markup

Question 2

Drink pricing

Answer 2

• Price category system

- Designed to incorporate similarly priced liquors and drinks into common pricing groups

Question 3

Groups

Answer 3

1. Well: Make cocktails
2. Call
3. Premium
4. Super premium
5. Deluxe premium
6. Ultra Premium
7. Star
8. Super star

Question 4

The complete food and beverage control system

Answer 4

1. The planning phase:
   - Financial + Marketing policy -> Catering policy (senior management)
2. The operational phase:
   - Purchasing, receiving, storing and issuing, preparing, selling.
   - Day-to-day control by Supervisor and departmental heads
3. Management after event’s phases
   - Management control after events
   - Day-to-day control by the F&B department
   - Info sent to department heads for action

Question 5

Purchasing

Answer 5

1. Objective:
\+ right amount of stock
\+ right quality
\+ right level
\+ right price
2. Cost:
- Costs of acquisition
- Holding costs
- Cost of stockout (mismanagement)

Question 6

Costs of acquisition

Answer 6

1. Preparation of specifications
2. Supplier selection
3. Negotiation
   4.

Question 7

Holding costs

Answer 7

• Financial ( interest rate)
• Insurance (cheap wine = purchasing price, rare wine = market price)
• Inventory cost
• Losses
• Storage costs
• Handling and inspection stores
• Heating and refrigeration
• Clerical costs

Question 8

Cost of stockout

Answer 8

• Mismanagement

- Cost of alternatives, such as buying at enhanced prices, using expensive substitutes.

Question 9

Determine stock levels (by using past sales data)

• Maximum stock
• Minimum stock
• Ro-order level (ROL)

Answer 9

1. Maximum stock = Average usage rate x (review period + lead time) + safety stock
   M = W x (T + L) + S
   * lead time: between the. time of purchase and time of receiving
   * review period: control stock, reorder
2. Minimum stock = W + (L x W)
3. ROL = (W x L) + S < max stock>
   W x L < min stock>

Question 10

Control of the stock and the issue of stock

Answer 10

• Calculated Medium Price (CMP)
• FIFO
• LIFO
• Visual control

Question 11

Calculated Medium Price (CMP)

Answer 11

• paid price taking into account the different purchase prices over time, effective view of reality
• every 6 month
  C = (PxQ + P’xQ’ + P’‘xQ’’)/ (Q + Q’ + Q’’)