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. (301-302)

• Money or other goods received by a person for purchasing from a specific vendor

Please list the 3 reasons why a foodservice operation would purchase ready made products? (313)

• Consistency– A buyer knows 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? (316)

• Purchase order

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 affect its value? (318-319)

• Time value• 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