Robatelli’s Continuing Case Solution – Chapter 11
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a. Briefly describe Robatelli’s conversion processes, i.e., what gets converted, how is it done, and where are the
underlying processes performed (at which Robatelli’s location(s))?
In general, the conversion process is a two stage conversion process to convert raw food into prepared meals for
customers in the restaurant, take-out, and delivery orders. The first stage would be to convert certain raw food
the restaurant.
b. What procedures and internal controls would you recommend to Robatelli’s to minimize the risk of lost sales due to
stock-outs, i.e., running out of ingredients, and the resulting idle time that may be incurred while awaiting delivery from
the commissary.
The ideal solution would be to use as sophisticated IT system, such as an ERP, that would included internal controls
are triggering purchases at the appropriate time.
Without a sophisticated IT systems, there would be some manual processes in the inventory and purchasing systems.
There must be internal control policies and procedures to monitor and control inventory levels. First, there must be
clear policies as to who is assigned responsibility accomplish tasks such as monitoring inventory, authorizing
purchases, and receiving goods.
c. Following is an example of the structure of a bill of materials. Revise this example to show details of the sub-assembly
of the dough and the various components (sauce, toppings, and cheese) and underlying materials (ingredients) that
would likely be included on Robatelli’s bill of materials for a large deluxe pizza.
See the last page of this document.
Dough
(Subassembly)
Spices
Various Meats
Sauce
(Subassembly)
Vegetables
Cheese
Deluxe Pizza