Hot Item Inventory

Hot Item Inventory allows stores to keep track of high velocity or high-cost items between all inventory cycles and display a Hot Item Ideal vs. Actual (IvA) report.

Examples of hot items could be expensive steaks or items struggling with a variance that are continuously on the Top 20 Food IvA.

(warning) To add or remove items to your Hot Item Inventory configure a Hot Item Inventory Set for all restaurants using Inventory Sets Maintenance OR let each restaurant define their own items to inventory on Hot Counts using Inventory Guide Set 

When to Enter Hot Item Counts

Hot Item counts are treated as beginning counts for each day. They can be entered 3 ways depending on what works for your store. 

  1. Enter Hot Counts in the morning for the current business day after all sales and orders are in for the days prior.
    1. For example if you are in store doing counts in the morning and the current date is 10/1/2020 select the same date as the current day to enter and post counts.
  2. Enter Hot Counts at night to the next business day and save them
    1. For example if you are in store doing counts at night and the current date is 10/1/2020 select the next day 10/2/2020  to enter counts and save.
    2. You will want to come back into Decision Logic and post the following morning after the sales are in for the previous day.

  3. Enter Hot Counts at night after sales have imported then post to the following day
    1. For example if you are in store doing counts at night and the current date is 10/1/2020
      1. If you have a Revel or Toast POS Integration run Sales from the End of Day> Actions > Run Sales. 
        1. Validate Sales have imported proceed to step  3b
      2. If you have Aloha, Micros or other database integrations, run the UDT application for the current day.
        1. Validate Sales have imported proceed to step 3b
    2. Then go to Hot Item Entry and select the next day 10/2/2020  to enter counts and post.

Hot Item IvA Calculation

Using the same formal as Ideal vs. Actual (IvA) Reporting


Formula

Ideal vs Actual (IvA)

Ideal vs Actual is the amount actually used compared to the ideal amount used.  This is found by using the following formula:

Beginning Inventory + Purchases - Ending Inventory = Actual usage

Actual usage - Ideal usage = Variance

Ideal UsageIdeal usage, or the quantity that was used if 0 product was wasted, is calculated directly from product mix reporting that is pulled from the POS System.

To calculate Hot Item IvA correctly:

  • Sales need to be posted in Decision Logic DSR and Menu Mix for the prior day
  • Orders/Invoices need to be received for the prior day
  • Two consecutive Inventory counts for an item must exist to return a beginning and ending inventory.
  • Hot Item is a single entry line for the sum of all inventoried items on that product. 
  • Inventory items cannot be counted in multiple locations or sorted sheet-to-shelf.
  • Hot Items will show up only once in the Mobile Inventory or printed guide.


Enter Hot Item Inventory Counts

  • Navigate to Operations>Inventory Home>Enter Inventory
  • Scroll down to view the Hot Item Inventory Section with the Entry calendar
  • Use the calendar to select the beginning inventory for the appropriate day
  • A list of items from the Hot Inventory set will be available
  • Enter the counts for these items in numeric quantity using the measure defined
    • Items are listed using the generic Decision Logic ingredient names & numbers for items and not Bid File or Order guide descriptions & numbers. 
  • (warning) If you are wanting to review Hot Item Inventory on a daily basis for the previous day, then you will want to do one of the following methods:
    • Method 1- take hot item inventory at the end of the day using the following day's date (so select 10/6 for the night of 10/5)
    • Method 2 - take hot item inventory at the beginning of the day, using today's date (in this example 10/6)
    • This is due to the beginning inventory for 10/6 being used as the ending inventory for 10/5 
    • If you want to see the hot item IvA reporting for the 5th on the 6th, then the Hot Item inventory for the 6th does have to be entered.
    • If you do not use one of the methods above and instead you want to use the current date to take the hot item inventory at the end of each day, reporting will still work, but there will be a two-day delay (in that case you would have to enter the inventory for 10/7 to get the reporting for 10/5, due to inventory on 10/6 being the ending inventory for 10/6)

Update Hot IvA

If an order is received for a hot item after counts have been entered and posted, you will want to run the Update Hot IvA. 

You can find this page by going to Maintenance> Product> Update Hot IvA.

Select the date, the store, and run the Update.

  • Running this update can also correct missing Ideal Quantities. 
  • If your user rights do not allow you to access this page, the alternative option is to open your Hot Item Inventory and update the count.

Hot Item IvA Requirement

Hot Item IvA report rolls up any prepped items to report under their raw ingredient, therefore the raw ingredient also needs to be enabled as a Hot Item to get roll-up reporting for the prepped items. 

Hot Item IvA Reporting 

Below is Example 1 for how the Hot IvA reporting is being calculated:


For Bacon in the above screenshot, hot item counts were posted for

DateInv. Qty.
10/2650
10/3500
10/4450
10/6350
10/14400

The date range queried 10/2-10/6, is for Beginning Inventory, however, it only displays a row where there is an Ending Inventory.

For this example, we get back rows for the Ending Inventory 10/3, 10/4, and 10/6, which all display a Beginning Inventory of 10/2, 10/3, and 10/5, respectively. There is no displayed Beginning Inventory for 10/4 since there were no counts on 10/5. There is no Beginning Inventory of 10/6 since there were no counts on 10/7.

There is no 10/5 Beginning Inventory for the 10/6 Ending Inventory, so we go back to the first count where we can find it, which is from 10/4. Similarly, if you query instead to 10/14, you will get one additional row for Beginning Inventory for 10/13 which uses the count from 10/6 as the Beginning Inventory and 10/14 as the Ending Inventory.

The reason we do this is to compensate for days where a Hot Item Inventory Count is not taken so that you can do a hot item count only every couple days and still get actionable numbers and because any action items taken from Hot IvA reporting is focused on the ending Inventory.

Example 2

Hot Item Inventory counts are posted for 1/9 and 1/12.

When we run hot item IVA for 1/11/2020, Decision Logic will look for all inventories entered for one day ahead of the begin and end dates specified

  • We would be looking for inventories entered from 01/10 to 01/13.

The Hot Item IvA report returns the results of the date displayed will be one day before the date of the inventory.

  • We are using the inventory entered on 01/12 will show up with 01/11 as the date in the report.

(star)Note, if you were to bump the search back a day to start on 01/08 the inventory entered on 01/09 will still not show up because it currently does not have beginning quantities due to it being the first inventory that was posted.



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For additional questions or assistance please submit a support ticket by visiting the Decision Logic Help Center.

All training videos are located in the /wiki/spaces/CKB/pages/1121779733