Analysis

            Bahama Breeze uses a computer program called “I-kitchen” to manage their inventory. The functions of the system including keeping track of inventory, retrieving historical inventory data and generating weekly demands for all inventory items based on certain factors. The program also takes information relevant to inventory orders into consideration such as inventory cost, lot sizes of shipments, spoilage and much more to strategically place an order with suppliers.

            Another critical factor of the program forecasts how much revenue should be generated from the inventory that has been ordered. Some factors that generate this forecast included number of guest counts, orders placed and inventory used also from previous weekly numbers. This is a helpful resource for Bahama Breeze as it allows them to strategically plan their inventory orders in the most efficient and resourceful method. 

 I-kitchen software  also predicts peak seasons based on historical data and prior weeks’ data. During peak season the number of items ordered are significantly higher than regular season. The system will advise managers to order more inventory when the system feels peak season is in full effect. Also, the software will also analyze what food product has been ordered the most. This will increase items ordered and sizes of inventory shipments.

            Bahama Breeze uses an inventory management system that is similar to the “P” system of inventory management discussed in the course textbook. The “P” system has a different demand per order due to inventory on-hand but the reorder point is always the same. For Bahama Breeze all orders are placed on Monday for the entire week, but the demand is different every time. This number varies based on historical data from prior weeks and data from the same time in the prior year.

            The flow of Bahama Breeze’s inventory is as follows:

1. Inventory is placed with suppliers on Monday. Demand is computer generated with I-Kitchen computer program.

2. Based on last week’s trends in consumption of inventory, shipments of the inventory ordered through out the week.

3. Inventory is received from suppliers and recorded in I-Kitchen program. Again, inventory shipments happen frequently throughout the week.

4. Inventory is order and consumed by customers and is counted in I-Kitchen software.

5. Inventory is counted every night and final count at week’s end is approved by manager and next week’s inventory order is placed with suppliers.

            One advantage of Bahama Breeze’s inventory system is there there is very low spoilage of inventory occuring. This leads to total use of all inventory ordered, very little is thrown away at the end of the night and leads to less inventory costs and higher net income. This is all a result from frequent orders of inventory being shipped throughout the week, which preserves the freshness and quality of the food. Bahama Breeze strategically receives inventory throughout the week from Monday’s placed order to avoid spoilage. This actually keeps the inventory off of Bahama Breeze’s hand until they receive it keeping holding costs low as well. Produce and dairy products, such as fruits, vegetables, milk and cheese, come in 5 times a week. Proteins, such as fish and meats, are shipped 3 times a week. All other items are shipped 2 times a week. Alcohol and beverages have the longest self life and is shipped only once a week.

           

            Also, all suppliers are local suppliers that are close to restaurant locations. The suppliers are preapproved by Darden HQ and are ready to deliver inventory at all shipment dates within a short driving distance. The restaurant also tends to keep a low number of suppliers for inventory. For example, food inventory is placed with only 3 suppliers at the Woodbridge location. Alcohol and Beverages each have their own suppliers respectively.

The inventory management of Bahama Breeze is a very effective method that produces positive results. There is rarely spoilage of food because of the process they use to order inventory. Inventory that is delivered numerous times a week allows the restaurant to adjust the quantity they need to purchase if there are sudden changes in the surrounding environment.