A case that is less than full of unit size products.
What is a split case?
100
System of inventory whereby purchased inventory is determined based on the number of units needed to return the item to a predetermined level.
What is par level?
100
Number of purchase units, such as cases, that a purchaser uses during an order period.
What is the product usage rate?
100
Random determination of when to purchase units; often used when a manager is purchasing from a retail buyer's club.
What is a periodic ordering system?
100
Estimated portions required for an order period minus portions in inventory equals quantity of required portions.
What is the formula for product yield calculations?
200
Retail organization that allows you to pay a fee and buy bulk merchandise.
What is a buyer's club?
200
System of inventory often used for perishable products, alcoholic beverages, dish-washing supplies, cleaning chemicals, and linens.
What is par level?
200
Computerized method that uses calculations to assess costs pertaining to usage rates, prices, and storage costs; noted for lower inventory and fewer chances for stockouts.
What is the EOQ Economic Order Quantity System?
200
AP weight minus edible yield equals production loss
What is the formula for production loss?
300
A strategy used by vendors to move unwanted merchandise at a discount.
What is a close-out?
300
System of inventory used for purchasing expensive items and nonperishable items. System based on a minimum and maximum number of units in inventory
What is Minimum-Maximum Inventory System?
300
Number of days or weeks for which a product is ordered.
What is the order time?
300
Used with large quantity buyers whereby they enter into an agreement to purchase a specified quantity over a specified number of deliveries. Advantages: Ensures a supply source that is consistent and may yield better discounts.
What is a Definite Quantity Contract System?
300
AP Weight - (AP weight - production loss) = weight post processing
What is the formula for weight after process and cooking of an item?
400
A recipe that provides detailed information, including the amount of every ingredient, to produce a food or beverage item.
What is a standardized recipe?
400
Fixed purchase specifications for products
Fixed quality of products
Prices constant and procedures to prevent theft
Expensive products requiring extensive inventory controls
Not perishable
Reasonable quantities not cause storage issues
What is the conditions for a Maximum-Minimum inventory system?
400
Number of purchase units usually used between the order period and delivery time. Example: It takes 2 days to deliver and 2 cases used per day. 4 case usage during lead time.
What is lead time?
400
System with an agreed upon minimum purchase amount, but no fixed quantity required. Can lock in a price for a particular time period.
What is a Total Requirements Contract System?
400
AP price per pound / edible yield percentage = cost per servable pound
What is the formula for cost per servable pound?
500
A system by which the vendor determines the quantities needed for purchase and retains ownership of the products until they are issued to production.
What is vendor-managed inventory?
500
Purchasing the exact amount of inventory needed. Often used for special events.
What is the Exact Requirements System?
500
Number of purchase units that should be available in inventory when an order is placed.
What is the order point?
500
System funded by petty cash for infrequent purchases or inexpensive prices.
What is an Open Market Purchasing System?
500
Lead Time product amount + safety level =
What is the formula for the order point in a minimum maximum inventory system?