Inventory Management For Your Cake Business

Baking and the food industry altogether is a daunting venture in itself. It involves producing and delivering the right mix of quality and quantity to consumers so as to make them coming back for more. Many new businesses struggle with the questions of how to produce the right amount of goods that cater to customer demand and minimize the cost of production.

There are many pragmatic methods of tracking and managing inventory that one can use for their home scale business. One of the most simple ways of tracking inventory is determining the cost of your products by individually adding up the cost of ingredients used in a recipe, this helps in efficiently pricing your products and managing the number of ingredients needed.

There is an easy formula you can use while calculating the cost of your food which is:-

(Beginning Inventory + Purchases — Ending Inventory) / Sales

One more way is to list every item that you possess and manage its use in a spreadsheet. Keeping track of units that you currently possess and updating them regularly will help you avoid last-minute hasty purchases and help you use the ingredients or products that are about to go past their best-by date.

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