Chapter 4 | Purchasing and Receiving Flashcards
What is the product cycle?
- Purchasing
- Receiving
- Storing
- Issuing
- Producing
- Selling and serving
What are the three purposes of purchasing control?
- Maintain appropriate supplies - Quantity
- Ensure intended quality
- Obtain favorable prices
Benefits of standard purchase specifications
- Force owners to determine exact requirements in advance
- Useful in menu prep
- Facilitate checking food as it is received
- Eliminate misunderstandings
- Allows for true competitive bidding
Definition of par stock
The maximum quantity that should be on hand right after the most recent receiving
Definition of DEI
The minimum amount to have at the end of the period
What factors affect the level of par stock
- Storage space
- Limits on the value of inventory
- Frequency of orders
- Usage
- Purveryors’ minimum order requirements
What is a standing order?
Arrangement with a supplier to deliver a set quantity of goods each day without being notified
What are the functions of the Steward’s Market Quotation List?
- Taking daily inventory of perishables
- Determining suitable order quantities
- Recording market quotations
- Selecting vendors
What is the method of deciding quantity to order for perishables and non-perishables?
Perishables: Steward’s Market Quotation list or Standing Order - Decided by purchase managers
Non-Perishables: Standing Order - Decided by supplier
Equation for periodic method
Amount needed - amount on hand + DEI = Amount to order
Equation for perpetual method
Par stock - Reorder point + normal usage until delivery = amount to order
What is a purchase order used for?
- Quoted price
- Quantity ordered
- Product specification
- Instructions to the receiving clerk
- Payment authorization
Steps of purchasing food
- Develop purchase specifications
- Select suppliers
- Establish part stock levels
- Arrange for standing orders
- Fill out market quotation sheets for competitive bids
- Fill out/send purchase orders to suppliers
What is an invoice
- Comes with deliveries
- Stamped and signed to acknowledge quantity, quality, and price
- Forwarded to the bookkeeper for payment
What is the difference between a bin card and a perpetual inventory card
Bin card: periodic method
Perpetual inventory card: perpetual method
What are standard procedures for receiving?
- Verify quantity, quality, and price
- Move food to appropriate storage
- Stamp invoice
- Prepare Receiving Clerk’s Daily report
- Forward paperwork
What are the functions of an invoice stamp?
Verifies the date the food was received.
Signatures by different people vouch for accuracy
What is a receiving clerk’s daily report?
A daily summary of invoices for all food received
What is included in a Receiving Clerk’s daily report?
Directs - direct to Food Cost
Stores - to inventory
Others - all non food items
What are potential problems with receiving?
Weight problems, Quality problems, and Control problems
What is the effect on today’s food cost if Directs are miss-classified as stores?
Today’s food cost would be lower than it should be
