Raw materials
Bread Garden Bakery has divided the raw materials into two groups which are main materials and secondary materials. The main raw materials for Bread Garden Bakery include flour, yeast, sugar, cream, milk, eggs, and butter. The secondary raw materials are involved nuts, fruits, food coloring, flavoring, and supporting materials such as candle, cake box, and plastics. Bread Garden Bakery used the first-in-first-out …show more content…
The company outputs are involved bread, cake, desserts, and biscuit while the supported products are jam, snacks and beverages such as potato chips and soft drink. Bread Garden Bakery has different type of inventory management for these two categories products.
The company has replenished the supported products when this type of products has less than 40% of the stock. For the bread, the company has produces it every morning and display it in the shelf and sell the fresh products to the customers every day. The company will packing the remaining products and sends it to the construction site or factory with cheaper price in second day to reduce the costs and avoid waste since the life cycle of this type of products is short and cannot keep in long period.
On the other hand, the company has produced the cake every two days and produces five to ten cakes per time. The quantity of producing depends on the inventory and the company will produce more cakes in the festivals and beginning of the months because of payday. The company will also produces the new products when the stock is less than 40%. The company has place the cake in the refrigerator to keep it fresh, but the life cycle of this type of product is still short which only five days after producing. The company has been forced to thrown away the remaining products if it cannot sell within five days period, so the inventory for the product is