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Inventory Management

FIFO Stock Control System

Overview

The inventory system tracks raw materials across multiple branches using FIFO (First In, First Out) methodology for accurate cost tracking and stock management.

Add Stock

Receive inventory

Transfer

Between branches

Wastage

Track losses

Auto-Deduct

Recipe based

FIFO System Explained

First In, First Out

Oldest stock is used first to minimize waste and ensure freshness

How FIFO Works

Batch 1 (Jan 1) 100 kg @ $5/kg

Oldest batch - Used first

Batch 2 (Jan 5) 150 kg @ $5.50/kg

Used after Batch 1 is depleted

Batch 3 (Jan 10) 200 kg @ $6/kg

Newest batch - Used last

Benefits of FIFO

  • Reduces spoilage and waste
  • Ensures product freshness
  • Accurate cost tracking
  • Better inventory valuation
  • Compliance with food safety standards

Adding Stock

Step-by-Step Process

1
Navigate to Inventory

Click "Inventory" from sidebar menu

2
Click "Add Stock" Button

Opens add stock modal

3
Fill Required Fields
Branch: Main Branch
Raw Material: Chicken Breast
Quantity: 50 kg
Cost per Unit: $8.50/kg
Batch Number: BATCH-2025-001
Expiry Date: 2025-02-15
4
Submit

Stock added to inventory with new batch created

What Happens Behind the Scenes

  • ✓ New inventory batch created with cost tracking
  • ✓ Total inventory quantity updated
  • ✓ Transaction recorded (type: 'in')
  • ✓ Inventory log entry created for audit trail
  • ✓ Stock valuation recalculated

Stock Transfer Between Branches

Transfer Process

Move inventory from one branch to another with FIFO cost tracking

Source Branch

  • ✓ FIFO deduction from oldest batches
  • ✓ Quantity decreased
  • ✓ Transaction: type 'transfer' (negative)

Destination Branch

  • ✓ New batch created with avg cost
  • ✓ Quantity increased
  • ✓ Transaction: type 'transfer' (positive)

Example Transfer

Transfer Request:

From: Main Branch
To: Downtown Branch
Item: Tomatoes
Quantity: 30 kg

FIFO Calculation:

Batch 1: 20 kg @ $2/kg = $40
Batch 2: 10 kg @ $2.50/kg = $25
Average Cost: $65 / 30 kg = $2.17/kg

Result:

Downtown Branch receives 30 kg @ $2.17/kg in new batch

Recipe-Based Auto Deduction

Automatic Inventory Deduction

When an order is placed, ingredients are automatically deducted based on recipes

Example: Burger Recipe

Recipe Ingredients:
Beef Patty 0.2 kg
Burger Bun 1 piece
Cheese Slice 2 pieces
Lettuce 0.05 kg
Tomato 0.08 kg
Order Placed: 5x Burgers

System automatically deducts:

• Beef Patty: 1 kg (0.2 × 5)
• Burger Bun: 5 pieces (1 × 5)
• Cheese Slice: 10 pieces (2 × 5)
• Lettuce: 0.25 kg (0.05 × 5)
• Tomato: 0.4 kg (0.08 × 5)

Insufficient Stock Check

System checks availability before accepting order. If any ingredient is insufficient, order is rejected with details.

Real-World Examples

Example 1: Daily Stock Receiving

Scenario: Morning delivery from supplier

Received: 100 kg Chicken @ $7.50/kg

Batch: BATCH-2025-015

Expiry: 2025-02-01

Action: Add Stock → Creates new batch

Result: Total chicken stock: 250 kg (3 batches)

Example 2: Branch Transfer

Scenario: Downtown branch running low on flour

Transfer: 50 kg Flour

From: Main Branch (has 200 kg)

To: Downtown Branch (has 10 kg)

FIFO Deduction: Uses oldest 50 kg from Main

Result: Main: 150 kg | Downtown: 60 kg

Example 3: Wastage Recording

Scenario: Spoiled vegetables found during inspection

Item: Lettuce

Quantity: 5 kg

Reason: Expired - past use-by date

Action: Record Wastage → FIFO deduction

Result: Stock reduced, wastage report updated