Bid File Multipliers

Bid File Multipliers

One of the most important functions in setting up new items (or modifying existing ones) is setting up correct multipliers for your item. 

Most reporting tools in DL – including COGS, IvA, TvA, etc – are affected by what your multipliers are. 

The multipliers you set also affect how you count your items during an inventory, how you will use them in recipes, how you will order and receive them, etc. 

Given how many facets of DL these multipliers impact, it’s easy to see the importance of correct multipliers for accurate, reliable data.

To learn how these are used in reporting visit  Supply Chain Reporting 

Definitions of Terminology  

Let’s start by defining key terms we’ll be using:

• Ingredients are created for each item that is used in Recipes.  These ingredients are then used to create Inventory Guides, as well as connected to a Bid File item.  Ingredients form the link between the individual items in the POS menu items and the Bid File used to order product.  DL will assign each ingredient a product id.
  
  
• The Inventory Measure (IM)  is used to standardize the way that inventory is taken for each ingredient.  This standardization ensures that inventory is taken the same way in all restaurants.  The Inventory Measure is set as you create an Ingredient.  Typical Inventory Measures include Pound, Each, Bag, Case etc.
  
  
• The Inventory Multiplier (IMX) is a number used to convert between the way you inventory an Ingredient, and the way that you order an Ingredient.  If you inventory an item by the pound, and order it by the case, the Inventory Multiplier is the number of pounds in a case.  The Inventory Multiplier is set as you map the Ingredient to the Bid File Item.
  
  
• The Recipe Measure (RM)  is used to standardize the way that an Ingredient is used in Recipes.  The Recipe Measure is set when you create an Ingredient.  Typical Recipe Measures include Each, OZ, Cup, Tablespoon etc.
  
  
• The Recipe Multiplier (RMX) is a number used to convert between an Ingredient’s Recipe Measure and its Inventory Measure.  In a sense, how many recipe units that exist in 1 inventory unit.  For example, if an item is used in recipes by the ounce, and inventoried by the pound, the Recipe Multiplier would be the number of ounces in 1 pound. This would be 16.  If an item is used in Recipes by the Cup and inventoried by the Bag, it would be the number of Cups in 1 Bag. 
  
  
• Recipes are created for each Menu Item you have.  The recipe contains the quantity used of each of the ingredients used to make the Menu Item.
  
  
• Prepped Items are used when there are multiple stages of completion for menu items.  If some product is prepared ahead of time, we create a prepped item for this product.  Sauces, portioned products, and items inventoried in multiple locations are examples of prepped items.  Each prepped item has a recipe of ingredients used to make the prepped item.  Prepped items can be added to Inventory Guides so that a weekly inventory can be taken.  Commonly prepped items are set up for any item that has “transitional stages” of preparation (ex:  Prime Rib, Salsa, or Pasta Sauce), or items that you want to inventory in different parts of your store (ex:  FH-Milk, BH-Milk).
  
  
• Prepped Item Inventory Multiplier (IMX) is always 1 when using the prepped item page.
• Package Size is how the distributor packages the item for ordering (the Distributor designates what this will be).  For example, if a distributor sets the package size on their bid file for an item to “6-4lb bag” then anytime you order 1 of this item, you will be ordering six 4 pound bags of this item
  
  
• Bid File is an imported (or manually created) list of all products a distributor carries.  Each bid file item will come with a DC item # (an item number assigned by the distributor).  The bid file item is where we link the ingredient, the account category, and set our multipliers.
  
  
• Order Guide is a list of bid file products that you want your stores to be able to order.  This acts as a filter to the bid file so you can limit and control which stores can order which items.
  
  
• Inventory Set is a list of products (ingredients and prepped items) that are inventoried.  An item must be on the inventory set to be able to inventory it.
  
  
• Menu Items are items that will be placed on menu sets to be sold to your guests. 
  
  
• Menu Set is a list of all menu items sold (can be store specific or for all stores).  The menu set is like a translation table to link up the menu items to the POS #’s that are associated with them on your POS System.

Common Conversions

Now that we’ve seen a handful of examples, let’s list out some common conversions and on the next page, answer some questions and actually fill out some examples (pop quiz style).  This will help you apply these concepts.  The answers will be on the next page after to review if you answered correctly. 

Common Conversions:

Multiplier Examples

Let’s look at a couple examples on how multiplier conversions work. 

Example 1:  We have an 8 oz Sirloin Steak that has a package size of 40 lbs.  We want to inventory it by the pound but our recipes use it by the each (EA) (for example a recipe will call for one 8 oz steak). 

Since we want to inventory this by the pound, our Inventory Measure would be LB (Pound).   For each order of this item (each case), according to the package size, we get a total of 40 lbs, so our Inventory Multiplier would be 40 LB.

Since our recipes call for a single 8 oz steak our Recipe Measure would be EA (each).  Now to calculate our Recipe Multiplier, we need to ask how many EA (Rec Multiplier) there are in one LB (Invt Multiplier).  Since an EA refers to an 8 oz steak, and there is 16 oz in 1 pound, there would be 2 steaks (each) in 1 pound.  So our Recipe Multiplier would be 2 EA.

Example 2:  We have a 7-ounce boneless chicken breast that we order in a case.  This case has 6 bags of 12 breasts.  Although I order it by the case, when we are counting inventory we count how many individual chicken breasts we have on hand.  Our recipes also call for individual chicken breasts (i.e. a recipe will call for one 7oz breast). 

Since I order this by the case but want to inventory it by the each, the Inventory Measure would be EA (each).  Now, the inventory multiplier would be 72 because in each case, we have 72 individual chicken breasts (6 bags of 12 à  6 x 12 = 72).   So our Inventory Multiplier on our bid file would show 72 EA.

Since our recipes use this item by the individual breast, our Recipe Measure would be EA (each).  Now for the Recipe multiplier, we need to determine how many EA (recipe measure) are in an EA (inventory measure).  There is 1 EA in every EA so our full Recipe Multiplier would show 1 EA.

Example 3:  We have an 8-ounce chicken breast with a package size of 6 - 5LB bags.  We want to inventory this item by the bag, but use it in recipes by each individual chicken breast.

Since the package size is 6-5LB bags, and we want to inventory it by the bag, our Inventory Multiplier would be 6 Bags.

Since our recipes call for this item by the individual breast, our Recipe Measure would be EA.  Now to derive our recipe multiplier, we need to consider how many EA (recipe measure) are in a Bag (inventory measure).  Since each bag holds 5 lbs of chicken breasts, and each breast is 8 ounces, seeing how there are 16 ounces in a pound it would take 2 breasts to make 1 lb.  So for every pound, we have 2 breasts, so we need to multiply that by the total in each bag (5).  So our conversion is 5 x 2 = 10.  Our Recipe Multiplier would be 10 EA.

Example 4:  We have that same 8-ounce chicken breast with a package size this time of 1 case.  However, the item has a catchweight set to 40 lbs.  (In other words, there are approximately 40 lbs in a case).  We want to inventory these chicken breasts by the pound, but they’re used in recipes by the EA.

Since we want to count this item in our inventories by the pound, our Inventory Measure would be LB.  As our catch weight tells us, there are 40lbs to each case we order so our Inventory Multiplier would be 40 LB.

Since we recipe this item by the individual 8-ounce chicken breast, our Recipe Measure would be EA.  Now we need to find out how many EA (recipe measure) are in an LB (inventory measure).  Since each breast is 8 ounces and there are 16 ounces in 1lb, it would take 2 breasts to make 1 lb.  Therefore our Recipe Multiplier is 2 EA.

Example 5:  We have a garlic butter spread with a package size of 4 – ½ GAL (four half-gallons).  We want to inventory it by the half gallon, but our recipes use this item by the ounce.

Since we want to count this item by the ½ gallon, our Inventory Measure would be “1/2 Gal.”   With a pack size of 4-1/2 Gallons per case (order) our Inventory Multiplier would be 4 (1/2 Gal).

Since our recipes use this item by the ounce, our Recipe Measure would be OZ.  To figure out the recipe multiplier we need to know how many ounces (recipe measure) are in one half-gallon (inventory multiplier).  Since 1 GAL = 128 OZ, a half gallon would be 64 ounces.  So our Recipe Multiplier is 64 OZ.

Additional Examples:

*Pack size 12 - 16 oz bottles
Inventory Multiplier is 12 bottles and the Recipe Multiplier is 16 ounces (how many ounces is in ONE bottle)

*Pack Size 6 Gallons
Inventory Multiplier is 6 Gallons and the Recipe Multiplier is 128 ounces (how many ounces is in ONE gallon)

*Pack Size is one case with 24 bottles
Inventory Multiplier is 1 case and the Recipe Multiplier is 24 bottles
If the Inventory measure is +bottle+ instead of the case then the Inventory Multiplier is 24 bottles and the Recipe Multiplier is 1 bottle

*Pack size is 2 boxes with 24 ounces per box
Inventory Multiplier is 2 boxes and the Recipe Multiplier is 24 ounces (how many ounces in ONE box)

-If the Inventory Multiplier is Pound and the recipe multiplier is ounces, then the Inventory Multiplier would be 3 pounds (convert by 2*24=48/16=3) and the Recipe Multiplier would be 16 ounces

-If the Inventory Multiplier is boxes and the recipe multiplier is also boxes, then the Inventory Multiplier would be 2 boxes and the Recipe Multiplier would be 1 box

Non Recipe Items

For items that are not included in recipes set RMX (Recipe Multiplier) = 0. This way those items will report as just an Actual cost in TvA reporting. Examples of these are Soda Syrup and table condiments. 

Practicing Bid File Multipliers:

On the following examples, please fill out the “ RMX” (Recipe Multiplier) and “IMX” (Inventory Multiplier) for each item. 

Take note of the “Pk/Size” (Package size) as that determines how the distributor sends the item. 

Also note the measure is already set for each item.  

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Answer Key:

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Mapping Bid File Items

Bid File items that are not inventoried do not always need an ingredient mapped* To set up these items follow the steps below:

For Electronic Bid Files

• Assign the Acct Category to the bid file item. This will ensure that when the item number comes over on an invoice it reports to the correct Account and does not fall into the 'unassigned' items list
• Add the bid file item # to the Order Guide so that stores can still Order

For Non-Electronic (Manual) Bid Files 

• If the item needs to be available for Manual Receive from a non-electronic distributor then it does need to have an ingredient assigned to the bid file and follow the same requirements that exist for items to show up on the Cost of Goods & Shelf Extension Reporting.