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Domain 4: Food and Nutrition Systems > B. Procurement, Production, Distribution, and Service (Part 1) > Flashcards

B. Procurement, Production, Distribution, and Service (Part 1) Flashcards

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1
Q

The function of acquiring material for production.

A

Procurement

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2
Q

A ______ center is a department assigned to both expense and revenue responsibilities. (ie. cafeteria)

A

Profit center

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3
Q

A _____ center is a department that manages expenses, but does not generate revenue. (ie. HR dept, marketing dept)

A

Cost center

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4
Q

_____-_____ is requesting samples from vendors for opening and comparison of qualities.

A

Can-Cutting

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5
Q

This method of purchasing is when a buyer requests quotes on items from one or more sources by PHONE or IN PERSON.

A

Informal, open market

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6
Q

**Informal, open market purchasing is used when a _______ amount is needed ______.

A

**Informal, open market purchasing is used when A SMALL AMOUNT IS NEEDED QUICKLY.

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7
Q

Method of purchasing where *written specifications of items needed are submitted to vendors who then submit a price (bid on items). All bids are opened together and the order is placed with the lowest bid (price).

A

*Formal, competitive bid buying

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8
Q

Method of purchasing where goods are purchased at a predetermined future date and price.

A

Future contracts

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9
Q

A formal agreement with a single vendor for majority of purchases.

Savings achieved with high volume purchases.

A

Prime vending

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10
Q

*________ purchasing is when the personnel in ONE OFFICE does all purchasing for ALL DEPARTMENTS.
(one organization)

Cost-effective and time saving.

A

*Centralized purchasing

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11
Q

*__________ or _____ purchasing is when SEVERAL ORGANIZATIONS UNITE for JOINT PURCHASING.
(several organizations)

Economic advantage of large volume purchasing.

A

*Group or Co-Op purchasing

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12
Q

Method of purchasing where **products are purchased as needed for immediate production and consumption, without need for storage or recording in inventory.

Receiving clerk takes items directly to prep/use. No storage.

A

*Just-in-time purchasing (JIT)

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13
Q

A written record of items ordered and quantities needed.

A

Purchase order, requisition

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14
Q

A _____ order eliminates the need to call in daily or weekly orders.

A

Standing order

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15
Q

This type of order describes products delivered with all transport charges paid.

A

Free-on-board (FOB)

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16
Q

_________ specifications indicate quality by objective test results.
ie. graded items like canned fruits and vegetables

A

Technical specifications

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17
Q

*___-_____ (opening cans for comparison among brands) gives first-hand information on appearance, taste, and flavor.

A

Can-cutting*

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18
Q

_______ ______ specifications indicate quality by brand.

A

Approved brand specifications

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19
Q

_________ specifications indicate quality by functioning characteristic.

ie. pH of detergent, dishes washed/minute

A

Performance specifications

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20
Q

List of approved products that an organization would like all personnel (who need such a product) to use.

A

Formularies

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21
Q

*Avoid _______ with vendors-decline gifts and favors.

A

*Avoid collusion with vendors-decline gifts and favors.

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22
Q

**A _____ ____ makes deal between (connects) buyers and sellers. Does not own products.

A

Food Broker**

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23
Q

Steps to determining needs:

  1. ____ x ____ = EP
  2. Convert EP to lbs
  3. __ / __
A

**Steps to determining needs:

  1. (portion size) x (# of servings) = EP
  2. Convert EP to lbs
  3. (EP) / (% yield)
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24
Q

If % yield not provided, but “shrinkage”, “waste” is stated, ____ ____ ______ _____ ______ to determine % yield.

A

If % yield not provided, but “shrinkage”, “waste” is stated, subtract this amount from 100% to determine % yield.

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25
Q

1 gallon = __ quarts

A

1 gallon = 4 quarts

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26
Q

Quantitative approach to ordering staple or regularly stocked items. Finds the quantity that minimizes both purchasing and inventory costs by determining the order size that is most economical.

Total annual cost of restocking inventory depends on # of times it is ordered each year - decrease this cost by ordering larger quantities, less frequently.

A

Economic Order Quantity (EOQ) method

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27
Q

Forecasting usage-

This method is suitable for short-term forecasts. Assumes purchases follow a trend over time.

A

Time series method

28
Q

Example of a time series method of forecasting. Uniformly weighs past observations/usage (numbers from previous months are weighted equally).

A

Moving average

29
Q

Example of a time series method of forecasting. Does NOT uniformly weight past observations/usage - more recent values hold more weight.

A

Exponential smoothing

30
Q

*_______ _______ uses SOFTWARE to forecast usage.

A

Exponential smoothing*

31
Q

Model of forecasting that is based on the assumption that a relationship exists between the item being forecast and other factors, like selling price, # of customers. This is used in medium to long-term forecasting. Expensive to develop.

A

Causal model

ie. Regression analysis

32
Q

Model of forecasting used when relevant data are scarce, or relationships between data do not persist over time. Must rely on opinions (expert opinions, marketing research)

A

Subjective model

ie. Delphi technique

33
Q

The receiving area should be convenient to _______ and _______. Thermometers, can openers, scales, and hand carts should be available.

A

Close to delivery docks with easy access to storage.

34
Q

The invoice lists _____, ____ _____ and total cost. It is prepared by the vendor and accompanies the order.

A

The invoice lists items, unit price, and total cost.

35
Q

The invoice is checked against ______ and the _____ _____.**

A

The invoice is checked against items received and the purchase order.*

36
Q

The invoice method of receiving is to _____ ______ to see if all items were delivered, ______ items, ______ items on receiving report, and _____.

A

The invoice method of receiving is to check invoice to see if all items were delivered, inspect items, list items on receiving report, and store.

37
Q
  • The _______ ____ receiving method is when the receiving clerk is provided with a blind invoice or purchase order that lists incoming merchandise, but omits quantities and weights. The receiving clerk inserts these numbers while checking the delivery. The blind invoice is then compared to the actual order.
    Forces the clerk to make a serious check of the delivery, but is also more time consuming and costly.
A

Blind check receiving method**

38
Q

The _____ ______ report lists items received, the date, # of units, unit price, supplier, and purchase order number.

A

The daily receiving report

39
Q

The ______ ______ is used when an order arrives without an invoice.

A

Substitution invoice

40
Q

The _______ for _____ lists discrepancies in an order, such as shortages.

A

Request for credit

41
Q

To prevent ____, the person who purchased the items should NOT also receive them.

Schedule hours for receiving. Avoid busiest production times, and multiple deliveries at the same time.

A

Theft

42
Q

**Fresh fish should arrive at

A

**Frozen fish should arrive at

43
Q

*Storage needs are based on the ____.

A

*Storage needs are based on the menu.

44
Q

Storage area should be convenient to ________ and ________.

A

Receiving and production.

45
Q

Dry storage should be kept between _____ and ____ degrees F.**

A

Dry storage should be kept between 50-70 degrees F.**

46
Q

Cleaning supplies should be stored separately from dry storage. Items in dry storage should be __” off the floor and away from the walls to permit ______ and flow of air, removing moisture.

A

6”

Ventilation

47
Q

**Dry storage should maintain a relative humidity of __-__%.

A

**Dry storage should maintain a relative humidity of 50-60%.

48
Q

**Perishable foods have a ___ water content, and require the highest humidity (__-__%).

A

**Perishable foods have a high water content, and require the highest humidity (85-90%).

49
Q

**All potentially hazardous foods should be stored

A

**All potentially hazardous foods should be stored

50
Q

Fresh fruits and vegetables should be stored at __-__ F.

Meat, dairy, and eggs should be stored at __-__ F.

A

Fresh fruits and vegetables should be stored at 40-45 F.

Meat, dairy, and eggs should be stored at 32-40 F.

51
Q

**Frozen foods are stored at __- negative __ F.

A

**Frozen foods are stored at 0-negative 10 degrees F.

52
Q

Storage time for refrigerated foods-

Eggs in shell: __-__ weeks
Eggs-yolks/whites: __-__ days
Poultry, fish, ground meat: __-__ days
Steak, chops, roasts: __-__ days

A

Storage time for refrigerated foods-

Eggs in shell: 3-5 weeks
Eggs-yolks/whites: 2-4 days
Poultry, fish, ground meat: 1-2 days
Steak, chops, roasts: 3-5 days

53
Q

This type of inventory is a running record of inventory balance. It is updated each time an item is added to or removed from storage.

A

Perpetual inventory

54
Q

This type of inventory is a physical count of items in storage. Usually done at the end of accounting period.

Counted as asset on balance sheet.

A

Physical inventory

55
Q

*This type of inventory uses a formula to determine when the item must be reordered (the order point).

A

Fixed order quantity inventory system*

56
Q

*Using the fixed order quantity inventory system, the order point is determined by:

(_______ ______ _______) x (________ _______) + safety stock

A

(average daily use) x (lead time) + safety stock = OP

Lead time: # of days between order and delivery

Safety stock = back-up storage

57
Q

This method of inventory management sets a par level for EACH item. Stock is brought up to par level each time an order is placed, regardless of the amount on hand.

ie. If par is 10, and inventory has 8, order 2.

A

Par stock method

58
Q

This method of inventory management is a stock rotation. Merchandise is arranged so that older containers are in front and are used first.

A

FIFO

59
Q

Method of inventory management where stock is allowed to deplete to a minimum level before a new order is placed. Goods are ordered only when minimum is reached, and only in amount needed to reach maximum level.

Amount of item ordered is the SAME each time it is ordered.

A

Mini-max stock

Amount of item ordered is the SAME each time it is ordered.

60
Q

The _ _ _ inventory __________ system is characterized by the idea that small amounts of product account for a major portion of inventory value.
Relative importance is measured by the total value of purchases for the item each year (the activity level).

A items: high value (15-20% of inventory, 75-80% of costs)
B items: moderate value
C items: low value (60-65% of inventory, 5-10% of costs)

A

ABC Inventory Classification System

Relative importance is measured by the total value of purchases for the item each year (the activity level).

61
Q

*With the ABC Inventory Classification System, the tightest possible controls are needed to __ items, which are the most expensive, and usually protein foods. Keep a minimal amount and watch carefully.

A

*Tightest control needed for A items

62
Q

Method of determining the value of inventory that is based on actual purchase price of the product.

Counts products and adds values together.

A

Purchase price method

63
Q

Method of determining the value of inventory that is based on the AVERAGE price paid for products.

A

Weighted average purchase price method

64
Q

Method of determining the value of inventory that is based on the last price paid for each item.

**Uses the most RECENT prices so tends to price inventory HIGH.

A

FIFO

**Uses the most RECENT prices so tends to price inventory HIGH.

65
Q

Method of determining the value of inventory that is based on the OLDEST price paid for each item.

Usually underestimates value - night use this method if must pay tax on inventory.

A

LIFO

66
Q

The use of a _____ _____ _____ is a quality control measure. All ingredients being used that day are measured and brought to the kitchen by one person.

Eliminates the need to go in and out of storeroom throughout day. Saves food costs and helps with standardization of recipes.

A

Central ingredient room* is a quality control measure.

Domain 4: Food and Nutrition Systems (6 decks)

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