Chapter 1
What concept refers to suitability for intended use?
a. Value
b. Serviceability
c. Sustainability
d. Quality
What refers to the alternate ways in which food products can be purchased?
a. Product description
b. Brand
c. Product size
d. Market form
What sorts of problems arise when products are purchased in larger quantities than necessary?
a. Inability to meet production requirements
b. Need to revise plans to compensate for stockouts
c. Possibility of disappointed customers
d. Greater risk of employee theft or pilferage
What refers to the idea of evaluating vendors before using their services?
a. Request for proposal
b. Playing hard ball
c. Vendor sourcing
d. Competitive bidding
Why can a service feature from a vendor justify a higher price from a purchaser?
a. Outsources unpleasant aspect of the job
b. It has value for the operation that is worth the price
c. The purchaser is not price-conscious
d. This is a device of vendors to overcharge
Who sets quality standards for items produced by an independent operation?
a. Corporate headquarters
b. Purveyor representative
c. Chef, manager, or owner
d. Manufacturer of selected brand
What is the purpose of product specifications?
a. Marketing tool to enable customers to realize concept of operation
b. Communication tool to ensure that staff and vendors understand quality needs
c. Recruiting device so that potential hires understand expectations
d. Sanitation; the health department recommends these for TCS foods
What sorts of problems arise when inadequate quantities of products are purchased?
a. Quality of perishable products decreases over time
b. Increased risk of product damage or destruction
c. Stockouts lead to inability to meet production requirements
d. Handling costs increase; inventory, moving to clean in storage, etc.
What do many purchasers consider to be the most important and the most useful information source regarding vendors?
a. Operations' own employees
b. Trade publications
c. Electronic marketing information
d. Previous experience
What refers to the buyer's view of pricing that assumes that vendors have carefully evaluated their own costs and determined a selling price low enough to attract customers and high enough to cover costs and provide a reasonable profit?
a. Nontraditional view of pricing
b. Fair pricing philosophy
c. Traditional view of pricing
d. Cost/benefit analysis
What is an example of purchases being based on a concept of intended use?
a. Paying cash on delivery to avoid credit charges
b. Using chopped olives, not super colossal, for pizza preparation
c. Daily deliveries to preserve limited storage space
d. Purchase according to accurate customer forecast
What refers to a strategy for comparing vendors' prices for products of acceptable quality to determine the lowest price?
a. Online shopping
b. Cooperative buying
c. Competitive bidding
d. Auction bidding
What refers to the percentage of customers likely to order specific menu items?
a. Weekly production forecast
b. Guest choice predictor
c. Item selection prediction forecast
d. Menu item popularity index
Which alternative purchasing source offers a deep selection of relatively few products?
a. Broad-line vendor
b. Buyer's club
c. Specialty-line vendor
d. Cooperative buying
What is the difference between a discount and a price reduction?
a. A discount is offered to all customers; a reduction to select customers
b. A reduction is offered to all customers; a discount to select customers
c. The terms are interchangeable
d. A reduction is a permanent price drop; a discount is temporary
Which type of ability in the purchaser job specification is described as understanding how the job affects the overall success-taking a big-picture view of the operation?
a. Technical
b. Interpersonal
c. Other (ethical)
d. Conceptual
What is a strong case to be made for the purchase of convenience foods over the preparation of foods from scratch on-site?
a. Pride in being known for exclusive offerings
b. Edible yield is high, thus it is cost effective, as there is less waste
c. Contribution to local economy
d. Ease of writing product specifications
What sort of items is the Par level inventory system often used for?
a. Dry storage items, china, and glassware
b. Furniture, fixtures, and equipment
c. Perishable, alcoholic beverages, and linen
d. Menus, flowers, and frozen food
Less time for purchasing and receiving, along with reduced unit costs that come with volume, are advantages of which kind of vendor?
a. Specialty line
b. Buyer's club
c. Broad-line
d. Cooperative buying
What three components are being purchased from the vendor?
a. Product, delivery, and price
b. Product, credit, and delivery
c. Product, service, and information
d. Product, service, and credit
How has the purchasing function evolved?
a. Advantage in strategies to adversarial relationship with vendors
b. Being phased out as companies downsize and absorbed into other jobs
c. Partnership with vendor is seen as competitive advantage
d. Technology is taking over so that it is no longer a standalone position
What is the single most important factor in the make-or-buy decision?
a. Cost savings
b. Consistency of product
c. Acceptable product quality
d. Staff buy-in
What refers to a system in which a purchaser has a long-term commitment with a vendor to make frequent product deliveries?
a. Just-in-time
b. Open market
c. Vendor managed
d. Periodic ordering
What sort of operation would be most likely to use a buyer's club?
a. Multiunit franchise
b. Institutional, such as school or prison
c. Private country or city club
d. Small, particularly if cash flow is an issue
What is meant by the phrase "going in positions"?
a. Prioritization of desired outcomes
b. Strategy for outmaneuvering opponent
c. Identification of weaknesses of adversary
d. List of grievances to put vendor on defensive