Improving Inventory for a Large Food Service Supplier
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Authors
Krolick, John
Ingersoll, Chrsitian
Fuentes, Joseph
Blackstock, Harmoni
Miller, John
Issue Date
2023
Type
Reports
Language
Keywords
Mathematica Militaris
Alternative Title
Abstract
Golden State Foods (GSF) was created in 1947, and ever since they have provided major fast-food chains with condiment sauces the world has come to know and love. In 2022, the company was ranked 101st on Forbes’s Largest Private Company List with an annual revenue of $5.1 billion (Murphy 2022). At GSF’s Georgia manufacturing plant, they have recently expanded their liquid food production, making condiment inventory their largest asset. The amount of ingredient inventory held heavily impacts their working capital. Working capital determines the amount of interest they must pay, which affects the company's overall profits. So, by reducing the plant’s food inventory by modifying their safety stock and order quantities we can increase their profits and help their future expansion efforts. Currently, the company is utilizing anecdotal knowledge to determine its food ordering processes. By analyzing historical data reports, we created an Economic Order Quantity (EOQ) model that accurately determines the optimized order quantity for seasonal and expensive ingredients, reducing excessive supply while preventing stockouts.
Description
Citation
Krolick, John; Ingersoll, Chrsitian; Fuentes, Joseph; Blackstock, Harmoni; Miller, John; and Contarino, Alexander (2023) "Improving Inventory for a Large Food Service Supplier," Mathematica Militaris: Vol. 27: Iss. 2,
Publisher
United States Service Academies