CHAPTER 5
PURCHASING AND INVENTORY
What is the first thing that a person
needs to do purchasing? (288)
• Make sure that an operation has enough
product to sell.
What is the purchasing document that
describes the characteristics of
products and services that an
operation
wants
to
buy?
(288)
• Product specifications
There are many tools available to help
purchasers buy the right amount of
product. They are: (288)
•
•
•
•
•
Customer count histories
Popularity index of items sold
Vendor delivery schedule
Availability of items from vendors
Recognizing outside influences that might affect
an operation
What is the amount of funds available
to an operation at any given time?
(289)
• Cash position
What is a customer count forecast?
(289)
• This is the number of customers expected for
a given time period
According to Table 5.1, there are 3
main parts to the channel of
distribution. Please let me know what
they are and give me examples of each
Primary Sources
•
•
•
•
Farmers
Ranchers
Manufacturers
Distillers
Intermediaries
• Wholesalers
• Distributors
• Suppliers
Retailers
• Restaurants
• School cafeterias
• Caterers
Farmers belong to what part of the
food distribution channel? (291)
• Primary Source
What is another name for capital?
(297)
• Assets
What are specialized, written price
lists created for the restaurant by a
supplier? (300)
• Bids
Please explain what a kickback is. (301302)
• Money or other goods received by a person
for purchasing from a specific vendor
Please list the 3 reasons why a
foodservice operation would
ready
made
(313)
•purchase
Consistency–
A buyer
knowsproducts?
exactly what they
are getting.
• Reduces prep time and labor costs
• Reduces the need for certain types of equipment
and storage space that might be otherwise
necessary to make something from scratch
Why would a chef conduct a make or
buy analysis? (313)
• To decide whether it makes better financial sense
to make the item from scratch or to purchase a
ready made product.
All of the items that we produce in
class are listed on what form? (314)
• Production Sheet
List 3 elements of production records.
(314)
• Production sheets
• Daily food cost sheets
• Sales mix records
What is it called when an operation
runs out of a food? (314)
• A stockout
What is the term used for the ideal
amount of an item to have on
inventory at any given time? (316)
• Par stock
What is a legally binding written
document that details exactly what the
buyer is ordering from the vendor?
• Purchase order
(316)
In a large operation, what form does a
manager need to compete to purchase
a new refrigerator? (318)
• Requisition form
As a product moves through the
channel of distribution, what 5 factors
• Time affect
value its value? (318-319)
•
•
•
•
Form value
Place value
Transportation value
Service value
What is the process of inspecting,
accepting, and, in some cases,
rejecting deliveries of goods and
services? (326-329)
• Receiving
What are food products that are sold
or distributed in a form that will spoil
or decay within a limited period of
time? (329)
• Perishable products
What is a record of all products an
operation has in storage and in the
kitchen? (333)
• Inventory
What are the 2 common methods for
purchasing nonperishable foods? (334)
• Physical inventory method
• Perpetual inventory method