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1605012022
Hospitality entails cordial reception, kindness in welcoming guests and strangers. Singh (2007)
defined hospitality as reception and entertainment of guests, visitors or strangers with liberality and
goodwill. Stocks are stores of goods and materials that are held in a hospitality organization, they can
be a nuisance, necessity or a convenience (Arington, 2006). Stock can come in various forms such as
raw materials, work−in−progress, finished goods and goods ready for sale (Levis, 2009). The
managers of hospitality establishments are challenged by paper based system and manual processes
to view and control their establishments’ inventory. Ineffective administration and mismanagement
of resources in hospitality establishments affect the needed quality delivery, customer care and
Hospitality industry is one of the leading industries in the world; It contributes to prosperity creation
and further economic development of a country; it covers hotel, resorts, and travel as well as
restaurant businesses. These services and businesses mutually depend on increase in tourism will
ultimately lead to improvement in resorts, restaurants, hotel including travel industries. This study
basically concerned with assessing the strategies of the production planning and inventory control in
hospitality. This will consequently access the extent to which stock can be controlled.
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Production planning and inventory control is a management function that involves planning
organizing, directing, coordinating, motivating, staffing and controlling of activities in the store and
inventory control.
On the other hand, it can also be defined as the art and science of achieving objective of the store in
an organization. A fundamental problem currently faced by hospitality according to Karlin and Zipkin
(2009) is the seasonal demand for their products. This problem is very common and concerns a wide
variety of products such as food stuff, functions and banqueting and many other applications. The
seasonal demand issue is difficult to access for both the theorist and practitioner. The problem
requires the optimal combination of inventory and production rates for each product in each time
period to be found; principal question is to determine the product quality in each period so as to
minimize the discounted costs of production, inventory storage, and cost sales. This type of demand
usually creates more complex problem because firms usually have insufficient capacity to meet
This ultimately impacts on planning of production process as a whole. The main thrust of this study
is to map out strategies to solve the problems of seasonality of the perishable goods which is very
prevalent in the Nigerian hospitality industry. The central question here is, how can menu planning
guests, and what range of perishable food items can be stored and over what period of time? As
opined by Patrick (2009) combinatorial optimization which means combining planning and inventory
control to optimize guest satisfaction in the running of hospitality business remains one of the
mathematical challenges.
Strategies directed towards confronting these challenges are many and varied, depending on the
methods of meal preparation service and the variety of customer satisfaction where stocks are
produced independent of orders because there is a need to supply customers immediately with good
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Mismanagement of items and low profit margin has become the order of the day in most hospitality
establishments. The mismanagement and other adverse effects can be linked to lack of effective
control of stock of materials for production and operational activities. Most hospitality organizations
have not identified stock control as very crucial which has led to such practices as theft, pilferages,
shortages, wastages, inappropriate accounting and inadequate record keeping and other loses, as they
cannot account for the usage and management of materials like the food items, toiletries, supplies,
stationary, production equipment, cleaning and laundry materials etc. This poses a serious problem
in terms of limited production and service, low profit margin and inability to meet up with
customer/guest demands.
In addition, poor purchasing and over buying of materials most especially the perishable items by
some establishment greatly hinders effective store management in the hospitality sector thereby
resulting in poor yield and quality products which consequently affects the desired profit Target
(Kinton, 1995). Wastages are bound to occur as a result of excessive storage. Goods such as
perishable foodstuff, inadequate ventilation, in the store room, moving stock, incorrect storage
temperature, exposure of food materials to vermin are other causes of deterioration (Ajayi, 1990) also
there are also consumable stocks such as office stationary. Economy in the use of office stationary
Most hospitality industry today faces one or more problems. This problem of seasonal availability of
food items is common to all hotels hence difficult to manage efficiently. In terms of perishable foods
especially, it affects production planning in the hotels. Since local storage facilities are virtually
absent, there is acute shortage of certain items at certain tune of the season and this is accompanied
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Also, the preference of customers affects the planning of the menu to satisfy the guest need.
Therefore, the problems enumerated has necessitated this study of assessing the strategies of
production planning and inventory control in hospitality in Lagos state. This is geared towards
enhancing efficiency in the planning of menu meals service to customer preference and price
fluctuation. Otherwise the meals planning would run into problem that will hinder the attainment of
The main objective of the study is to assess the strategies of production planning and inventory
control in the hospitality industry in Lagos state with particular reference to Sheriff Royale hotel.
i. Determine production planning and inventory control practices in the hospitality industry.
ii. Assess how hotels copes with production planning and inventory control in the face of
iii. Identify strategies to serve as a platform for future improvement in the area of purchasing
food items.
iv. Determine how production planning and inventory control affects hotel profitability.
RESEARCH QUESTIONS
1. What are the production planning and inventory control practices in the hospitality industry?
2. How does the hotel cope with production planning and inventory control in the face of
3. Is there any contributions of production planning and inventory control practices to the
sustainability of hotels?
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RESEARCH HYPOTHESIS
For easy analysis of the research study and as a basis for decision making on the research works, the
HYPOTHESIS ONE
H0: Production planning and inventory control does not affect hotel profitability
HYPOTHESIS TWO
H0: Production planning and inventory control practices does not contribute to the sustainability of
hotels
H2: Production planning and inventory control practices contribute to the sustainability of hotels
The results will be of importance to several parties. First, the result of this study will be useful to all
in hospitality industries. Other restaurant may also utilize the finding of the study for training their
staff about the need for proper production planning and inventory control it can be used by many
hotels and catering establishment in presenting seminar on how resources can be controlled.
Implementation of the recommendation base on the findings of this study will help any of the hotels
to plan properly and control the kitchen and prevent unnecessary wastage of meals. This study will
The findings of this study need to be interpreted in light of the certain methodological and conceptual
limitations. The study is limited to the production planning of menu and food items inventory control
in hospitality industry. The scope of the study was limited to Sheriff Royale Hotel, Ikorodu and its
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findings may not wholly explain the production planning and inventory control practices of hotels.
Further, the findings are based on the use of descriptive statistics and may be different if a more
analytical technique is used to examine the production planning and inventory control measures. The
study will be limited to evaluating the importance and general regard given to production planning
and inventory control practices in the hospitality industry. It would also review the effect of
RESEARCH METHODOLOGY
The research design to be used in this project is survey design. The reason for using this design is
that it helps the researcher to gain insight into the research topic. The research will be carried out at
Sheriff Royale Hotel, Ikorodu. Hotel staffs will be interviewed through the use of questionnaire. A
convenience sample of 50 subjects will be sampled using the probability sampling technique. The
instrument to be used for this research is the questionnaire. This instrument is preferred because of
its expressiveness in mode data collection and its presentation of uniformity to all respondent
enabling the researcher to have an easy analysis of data. Likewise, the unity that accompanies the
questionnaire which lead respondent to be more open and truthful. The questionnaires will be well
structured with close ended questions. The questionnaires will be personally distributed to the
subjects by the researcher. Simple descriptive analysis like percentage, mean etc. will be used for
statistical analysis. The hypothesis will be tested using chi square test
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