When does the purchasing process begin?
When needs are determined
Why is quality important?
To provide guests with consistent products that is worth the value they pay for.
What is the approximate number of vendors that should be approved for each category of food products?
4
What is a purchase requisition?
A form that contains information about the products that must be purchased.
What is an ethical behavior?
"The right thing to do."
What is a decentralized purchasing system?
A system in which there is no purchasing department that focuses on purchasing, receiving, and storing delivered products.
What is a product specification?
A form that lists specific attributes of the product (ie. brand name, market form, etc)
What is a vendor and what must they do?
Vendor is a business that sells products.
They need to consistently meet quality standards when delivering items at the best price.
What is a purchase order?
Why is ethical behavior important?
To increase:
employee morale
job performance
performance and quality output
commitment and trust
good, positive behavior
Differentiate between job specification and job description.
Job specification = knowledge and skills
Job description = list of task needed to perform
What is a make-or-buy analysis?
A study that suggests whether a product should be prepared "from scratch" on-site, or purchased as partially or fully processed item.
What is a Request for Proposal (RFP)?
Inquiry to a vendor about prices for products of a specified quality.
"5/10; net 30"
What does it mean?
5% discount if paid within 10 days. If not, you have 30 days to pay full amount.
What is a "best price first" policy?
Only the first bid will be accepted.
Explain the flow of process in a centralized purchasing system
Purchasing --> Vendor
Vendor --> Purchasing
Purchasing --> Accounting --> Vendor
Vendor --> Receiving
Receiving --> Storing
Storing --> Issuing
Explain the relationship between quality and price.
Quality ensures guest satisfaction. If guests sees that the quality they receive is worth the value they paid for, they are likely to come back and not hesitate to spend.
Food Safety Compliance
Consistently provides quality products at best price
Meets delivery schedule
Takes ownership of problems
Highly motivated
Easy, open communication
Shares similar values and ethics
What is a contract?
An agreement made between two or more parties.
What is back-door selling?
When vendor representative attempts to influence an employee to convince purchaser to buy their product.
To obtain the right product from the right source at the right price in the right amount at the right time
Describe the relationship between As-Purchased Costs (AP), Edible Portion Costs (EP), and Yield Percentage (YP).
AP is the exact cost and weight the product is purchased.
EP is the cost and weight of the edible portion of the product.
YP determines how much of the product is edible/useable in percent.
Franchisor owns the product brand and can sell it.
Franchisee purchase product brand for use in a fixed amount of time.
What does it mean to expedite orders?
To hasten delivery of products that have been ordered but hasn't been received.
What are the two goals of competitive bidding?
Ensures best price is received and reduces the possibility of favoritism