Module 7 Flashcards
This is a result of what?
Impact cash flow/budget Impacts ability to take advantage of special discounts Less storage place available Increased risk of theft and spoilage Dandling costs increases
Excessive Buying
This is a result of what?
Inability to deliver products/services to customers
Decreased customer satisfaction due to shortages
Decreased revenue opportunity
Staff stress
Indication of “poor management” ability
Buying too little
These items can help determine what?
Sales histories
Menu item popularity index (meal periods, day of the week)
Sales trends
Product yield/loss (waste %)
Forecast of needs
What are the 3 purposes of forecasting?
1) Determines amount of each ingredient that must be in inventory to prepare forecasted number of menu item
2) Inform cooks about number of items that should be prepared
3) Schedule production employees
What kind of Method/System is this?
Items purchased in the exact amount needed for a particular event (Ex: catering)
Exact requirement system
What type of method?system is this?
Random purchases
Periodic Ordering System
What type of method?system is this?
Several operation combine order fora similar quality to order (one purchase)
Cooperative (pool) buying
What type of method?system is this?
Computerized method- best used for large quantities and nonperishable items if storage space is available
Economic Order Quantity (EOQ)
What type of method?system is this?
- An agreement to purchase a definite quantity of produce over a specified number of deliveries
- Ensure consistent supply and potential discount
Definite Quantity contract
What type of method?system is this?
Similar to definite quantity contract except the purchase quantity is not fixed, and can be adjusted to meet usage need
Total requirements contract
What type of method?system is this?
“Petty cash” system-cash fund used to make infrequent and low-cost product purchases
Open Market system
What type of method?system is this?
Also referred to as “standing order”
-Vendor representative counts the number of items available in storage and replenishes to the established par levels
Vendor-managed par level
What type of method?system is this?
Long-term agreement with vendor to make frequent deliveries as items are needed
Just-in-Time System
Define these terms
1) Record of material (food & supply) assets owned by the operation
2) Process of maintaining items in storage at desired quantity level
3) Measure of how quickly food in storage is used
1) Inventory
2) Inventory Control
3) Inventory turnover
Percentage of Sales Volume
Fill in the blanks….
Two Inventory levels rules-of-thumb:
1) Inventory values should equal no more than 1% of total T______ S______ V_______.
2) Inventory values should not be more than approximately 1/3 of the average _________ product sales.
1) Annual sales volume
2) Monthly
