You might think that having something in excess is better than having a shortage. You feel like your profit margins will be a bit higher since you saved some stuff. Yes, you saved some stuff but do you know how it happened? There are 3 main reasons for inventory of excess:
- Your chefs is using less ingredients than should. Your chef might be afraid of being penalized in case of a shortage, so he decides to use less materials than it should be. The dishes will not be as tastier as they should be hence your guests will receive low quality dishes. It would be better if the chef just reduced the ingredients proportionally. Much worse is...
- Your chefs just don't follow recipes. Your chefs might not be keen with the recipes. Sometimes they could put more and sometimes less this will result in your dishes quality not being constant.
- You or your inventory manager could have mistakenly keyed in some of the incoming invoices twice. At the end of the month you will see the excess that you actually don't have.