Inventory and Receiving Management
Core concepts
Receiving is a control point: verify against the purchase order and specification, check temperatures (frozen ≤0°F, refrigerated ≤41°F), inspect dates and condition, and reject substandard product. Use FIFO and date-labeling; know the difference between perpetual and periodic inventory and how to compute inventory turnover (cost of goods sold ÷ average inventory). Physical counts catch shrinkage and theft. Storage rules-dry storage cool and dry, chemicals separated from food, raw proteins below ready-to-eat-prevent loss and contamination.
Traps
Questions test whether you reject or accept a delivery: a slightly warm refrigerated item is a rejection, not a "use first" item. Watch for turnover computed with sales instead of COGS, and for FIFO confused with LIFO. Also note that receiving records and invoices are audit trail, not optional paperwork.
Worked example
COGS $240,000; average inventory $20,000 → turnover = 12 times per year, or about monthly. Rule of thumb: high-turnover perishables should turn faster than dry goods; a sudden drop signals over-ordering or shrinkage.