(i) How does the hotel determine the order size?
There is a close monitoring of the daily issue of materials from the stores to keep up with the re-order level. However since the hotel serves in the upper segment, they have to keep quality and fresh produce are delivered on daily bases by a local supplier. Dry products and other sanitation materials are order on monthly bases from local suppliers since there is enough storage space. However the procurement department liaise with the management in forecasting demand so that during peak season, the supply is increased while it is reduced during the low seasons.