Below is the Discussion question, the attachment are from two classmates who have posted their responses for this discussion question. PLEASE RESPOND TO THE CLASSMATES "ONLY" AND USE SOURCES TO SUPPO

Classmate 1. Brian

Undoubtedly, there are an incredible number of factors that make running a restaurant very difficult. According to a survey by Cornell University, the restaurant rate of failure is above 26% (Sabol, 2016). Although there are numerous reasons restaurants fail, poor inventory management is likely at play in nearly every case. Keeping good inventory involves knowing what items were sold, what is on hand, and what is expected to sell in the future. Quantitative data about historical sales helps to project what will be sold, and qualitative experience provides valuable insights to formulate forecasts. These are often two elements new restaurant owners don’t have but gathering inventory data should be a priority from the start. It seems obvious that knowing what goes in and what goes out is essential to success, but the process of maintaining inventory is not always simple. Tightly controlled inventory systems keep costs down and avoid unnecessary production of goods, but it involves knowing what level of safety stock to maintain and is exponentially complicated with every new item added to the menu. For this reason, a restaurant may decide to offer a small number of items that have enough variety to satisfy demand, but don’t overly complicate inventorying by increasing stockpiles of goods that tie up capital and hinder cashflow. One way to reduce safety stock is to change the delivery method of goods to a faster system. Performing a cost/benefit analysis could tell management whether spending money to deliver goods faster would be beneficial to the bottom line. Large safety stock is mostly beneficial when goods have a long shelf life and would require exorbitant costs to deliver faster. Also, if bulk pricing can reduce overall costs it may be beneficial to store goods longer and maintain larger inventories. On the other hand, trying to maintain zero stock, although able to maximize profits (potentially) because no money is tied up in inventory, is only feasible in specific situations. Really, this is only possible when there is zero lead time so in reality, most businesses need to find the space between overstock and zero that fits their unique situation to maximize profits (OM, 2015).

Classmate 2. Amanda

Owning and managing a restaurant is undoubtably difficult. My parents and sisters have both owned restaurants and points in their lives. Throughout my life I have heard about the inventory and spent many nights reviewing menus and menu items. Safety Stock is inventory that is above the need of the demand (OM). Learning to balance the menu and the items needed for the menu is key to managing the safety stock. In my experience it is important for management to be able to use items in their inventory for multiple menu items. Menu items and dishes are better when they are fresh, so they should be consumed quickly and not go to waste. It is important to order only enough fresh produce to sell or if nearing the end of the shelf life to create specials that will use the ingredient so that they don’t go bad. When you have a zero-balance safety stock it is detrimental to your business because if you have to tell your consumers that you don’t’ have the menu item that they want they will be upset. If you have a large safety stock your products could spoil, and you will have to throw them out. Also, with a large safety stock it ties up a lot of your cash. The ideal is a small to medium safety stock. Items that can be frozen can be ordered in larger quantities, but fresh items should be kept at just over the demand (OM).