Introduction to Purchasing
The entire process of selecting, buying, and evaluating the products and services needed by the restaurant or foodservice operation.
What is Purchasing
What document implements an operation's quality standards?
What is Purchase Specification
Which products should the minimum-maximum inventory system be used for?
What are Nonperishable and Expensive Products
An inquiry to a vendor about prices for products of a specified quantity
What is a Request for Proposal (RFP)
Large operations typically use _______ purchasing system.
What is Centralized
An electronic system that collects information about revenue, customer counts, item sales, and other operating data
What is a Point of Sales (POS)
Forecasts indicate that 530 customers will be served Saturday night and 17% will order the Salmon. How many Salmon's orders will be served?
What is 90 Salmon orders
530 customers X 17%
The primary purchasing objective
what is to obtain the Right product or service from the Right source at the Right price in the Right amount a the Right time.
Which type of purchaser is concerned about the relationship between price and quality as purchasing decisions are made?
What is Quality-Conscious
Which purchasing system involves buying food products in relatively small quantities?
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What is Just-in-Time (JIT) Purchasing
Purchases most of the products needed by the units in very large organizations
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What is National Buying Groups
Document used to request prices from approved vendors
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What is Request for Proposal (RFP)
Best practices and how they are achieved
What is Benchmarking
What is the food cost for one portion of chicken at a 100% yield if a 4oz serving is used and the chicken cost $12.80 per pound?
What is $3.20
$12.80 divided by 16oz (1 pound = 16oz) = $0.80
$0.80 x 4oz (serving) = $3.20
The items needed are to generate what?
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What is Revenue
What must a purchaser know in order to determine the quality of a product?
What is Its Intended Use
A petty cash system is typically used with which type of purchasing system?
What is an Open Market Purchasing System
Product most difficult to purchase and distribute in a large multi-unit organization
What are Fresh Produce
Weight of product before processing
External factors impacting purchasing decisions (Hint: there are 6 factors)
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What are Customers, Distribution Channels, Global Trade Conditions, Governmental Regulations, Environmental Concerns, and Competitors
The lamb cost is $14.36 per pound (AP) and has an edible yield of 72%. What is the approximate cost per servable pound?
What is $19.95
$14.36 cost per pound divided by 72% edible yield
If Quality Distributors can obtain a better pricing than Luen Fung for similar products, then Quality Distributors has what
What is Competitive Advantage
Why do receiving staff use product specifications?
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What is To Determine that the Vendor Delivered Correct Products
System when purchase quantities are calculated on the basis of the number of purchase units required to return inventory to a predetermined level
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What is a PAR Level Inventory System
Vendor that offers a large selection of relatively few products
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What is a Broad-Line Vendor
Independent or single-unit operations use this type of purchasing system
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What is Decentralized Purchasing System
Identifying significant biological, chemical, or physical hazards at specific points in a product's flow through and operation
What is a Hazardous Critical Control Point (HACCP)
The purchaser needs 12 cases of Spam and currently has 2.5 cases in inventory. How many cases will the purchaser normally purchase?
What is 9.5 cases
12 cases needed - 2.5 cases in inventory
Four purchaser's job specification
What are Technical Skills, Conceptual Skills, Interpersonal Skills, and Other Skills
In the Make-or-Buy Analysis, a menu item that is associated with a specific operation.
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What are Signature Dishes
A carefully controlled process for determining the amount of the AP quantity of a product remaining after production
What is a Yield Test
Owns and manages a brand name and sells the rights to use its name
Who is the Franchisor
To create an accurate production forecast, manager use information from
What are Past, Present, and Future Sales Trend
Factors affecting purchase quantities
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What are Minimum Orders, Expected Changes in Price, Products on Sale, Trial Orders and Samples, and Parts and Supplies Being Discontinued
The par level is set for 8 cases of bell pepper. One case will be used between order and delivery, and 2 cases are in inventory. How many cases are needed to be purchased?
What is 7 cases
2 cases in inventory - 1 case between order and delivery = 1 case
8 cases PAR level - 1 case
In the basic steps of the purchasing process, the manager has identified the quality and quantity of steak. What are next three steps in the purchasing process he will be conducting?
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What are Identify vendor sources, Select Vendor for Order and Order Product
Weight of a product after it is processed, prepared, and cooked
What is Edible Portion (EP)
What is a Standard Recipe
Combining purchases of the same products for multiple establishments
Alternative purchasing sources
What are Broad Line and Specialty Line Vendors, Buyer's Clubs, Cooperative Purchasing, Local Sourcing, and Multiple Methods
A study that suggests whether a product should be prepared from scratch on-site or purchased as a partially or fully processed item
What is a Make-or-Buy Analysis
Using the following information for the maximum-minimum inventory for Salmon:
Purchase Unit: 1 case
Product usage rate: 21 cases per order period
Order period: 1 week (7 days)
Daily Usage Rate: 3 cases (21 cases per order period/7days)
Lead Time: 2 days x 3 cases per day = 6 cases
Number of cases used during lead time is 6 cases (3 cases per day x 2 days)
Safety Level: 8 cases
1) What is the maximum number of cases Salmon?
2) What is the order point for the Salmon?
3) How many cases of Salmon should be ordered at the order point?
4) How many cases of Salmon should be ordered if an order is placed when there are 16 cases in inventory?
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What are...
1) 29 cases maximum
21 cases product usage rate + 8 cases safety level
2) 14 cases order point
6 cases lead time + 8 cases safety level
3) 8 cases
14 cases order point - 6 cases lead time
4) 19 cases to order
16 cases in inventory - 14 cases order point = 2 cases excess
21 cases product usage rate - 2 cases excess
Verify: 16 in inventory - 6 cases lead time = 10 cases available at time of delivery
10 cases available at time of delivery + 19 cases to order = 29 cases maximum