Ingredients and Supplier Products - How they Interact – Help Centre

We firmly believe we have the most accurate and flexible stock system out there for Hospitality. When we built Opsimize we understood the mechanisms that other stock systems opted for when calculating FnB costings, and in most cases those are "Last Delivered Cost", "Default Cost" or "Average Cost". All of these are chosen as the system architecture to support the desired "Weighted Average Cost" (WAC) is complex, and most certainly the road least travelled.

To achieve WAC, we architectured the solution with "ingredients" at the core. Ingredients themselves are:

Can have many "Supplier Products" (A Single ingredient can be bought from many suppliers)
Exists with recipes
Is Counted at stocktake
Has a WAC per Business Unit (Calculated during the stock period, using the volumes and costs the ingredient is bought from via one or many suppliers).

The benefits of which ultimately mean:

You can buy from many suppliers during a stock period, it doesn't negatively effect stocktakes (Variances)
Your chef's are more likely to try new suppliers, as it doesn't mean updating with the Recipes on IT systems

To achieve the "Weighted Average Cost" or as we call it the WAC per Ingredient we have to make a relationship between the "Supplier Product" and the "Ingredient" to help you with this we have devised the below diagram;

Terminology Version;

Real-Life example;

The Weighted Average Cost calculation is easy to breakdown using the above example.

If I make 2 orders, 1 from Costco Watford for a pack of 80 and 1 from Fruit & Veg for a pack of 10, I now have 90 Bananas in total. The combined cost of those 90 Bananas is £21.00 to calculate my Weighted Average Cost I divide my total cost £21.00 by the 90 Bananas. This means my Weighted Average Cost for a Banana is 0.23p per unit.

This is crucial when we "Stocktake" as we use this to work out the total value "Stock on Hand".

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