procurement 3/4/5 Flashcards
what is recognition of need?
occurs in several places in foodservice op (production unit, storage area, computerized inventory)
–>inventory stock lvl (min and max)
what factors need consider when determine quantity to buy?
expiry dates, amount ppl feeding , canned vs. produce, how often use item (menu structure), amount space in storage, amount leftover and on hand
what is required on purchase requisition?
requisition #, delivery date, budget account number, quantity needed, description of item
purchase requisition sometimes used in food service org, esp if _____
centralized ingredient area (need this item by this date)
purchase requisition gen. from _____, not manually usually
food service software
purchase req and purchase order the same?
no–although some of req goes on order
how negotiate with potential suppliers?
establish qualifications of suppliers (reliable?), determine fair/reasonable price, set delivery dates, renegotiate as conditions change
what is receiving?
activity to ensure products delivered by suppliers are those that were ordered in purchasing (MORE than just acceptance of/signing for delivered stuff)
elements of receiving?
competent personnel, facilities and equipment, specs, CCP, sanitation, supervision, scheduled hours, security
why shouldn’t person purchasing also be person receiving?
cuz transparency
receiving doesnt just require physical strength. Also needs:
literacy, numeracy, and have a department involved, one person oversee
what does receiving area of commissary food service look like?
closed bulk transport carts, receiving kitchens have closed dock area
in commissary, not just receiving ____; could be ____
raw materials; ready prep
what is receiving process?
stock arrive, check make sure complete, check quality (accept or reject), completion of receiving records, removal to storage
types of inspection against invoice?
invoice receiving, blind receiving, electronic receiving
what is invoice receiving?
quantity is recorded
what is blind receiving?
don’t have complete record (no quantity), do physical count as received and input figures–common
what is electronic receiving?
use UPC scanner direct to computer, quick, but expensive
disadvantage blind?
could be less than what you ordered, loss of inventory
potential consequences of poorly planned receiving program:
short weights, substandard quality, double billing/inflated prices, mislabeled merch, inappropriate substitutions, spoiled/damaged, pilferage/theft, inaccurate inventory, unhappy employees, storing in wrong place
what is pilferage?
unrecorded inventory (result in loss–unintentional)
topic areas for policies/procedures for manage receiving area?
use scale to record wt, number of employees and assignment, clearly labelled areas, policy record when stuff removed from storage
what is storage?
holding of products under proper conditions to ensure quality until time of use
storage facilities should be accesssible to both ___ and ___ to reduce transport time and corresponding labour cost
receiving; production
why are competent employees essential for storage positions?
check in products from receiving, provide security for products, establish material-handling procedures
prevent theft and pilferage bY:
locked doors, authorized access only, situate on same floor as production
ideal storage:
categorize products into groups, arrange alphabetically/frequency of use, fast moving stuff placed near entrance
dry storage needs:
floor slip resistant, ceiling painted light colour, smooth surface, # doors limited, time of entry recorded, relative humidity 50-60%, temp never >50, good ventilation, adequate light
dry storage equipment?
dollies, storage bins, metal shelving
recommended temp for fresh fruit/veg is ____, meat is ___, frozen is ____
40-45 F, 32-40 F, 0- -20F
foods that ___ odours should be stored away from those that ____ odours
absorb; give off
foods that give off odours?
apples, cheese, cabbage, onions, peaches, potatoes
foods that absorb odours?
apples, butter, cheese, cornmeal, eggs, flour, milk, rice
what is inventory?
record of material assets owned by org, supported by actual presence of products in storage
for inventory control to be effective, need:
access to storage restricted, authorized requisitions for removing goods from storage, inventory lvls monitored, maintenance accurate records
record keeping needed for
issuing products, conducting inventories
what is issuing?
process used to supply food to production units after received
what is direct issue?
receiving–>production
what is indirect issue?
receiving–>storeroom–>production
storeroom issues need a _____
production (ingredient room) requisition
process of issuing?
requisition–>inventory control personnel–>ingredient control room employee
objectives of inventory records?
provide accurate info of food and supplies in stock, determination purchasing needs, provision of data for food cost control, prevent theft/pilfer
2 methods checking inventory?
perpetual and physical
what is perpetual inventory>?
purchases and issues continuously recorded for each product in storage, making balance in stock available all times
advantages perpetual
useful guide for purchasing, provide useful info on fast-moving, slow-moving, unusable items
disadvantages perpetual:
time and strict supervision required for effectiveness, restrict to dry/frozen storage, may result in discrepancies if issues/purchases not recorded, requires physical inventory anyway
what is phys inventory
periodic actual counting and recording of products in stock in all storage areas
frequency of phys inventory?
month end, 2-3 times year, accounting period
how simplify phys inventory?
multiple ppl, taking by storage areas, recording info on printed form
perks of phys inventory?
no system malfunctions, inspect for damage, look to see if outdated, organized; calc food costs, check against perpetual records, determine quantities to keep on hand
calc cost of food?
beginning inventory + purchases = cost of food available
cost of food available - ending inventory =
cost of food used
what inventory issues could impact cost of food used?
overpurchase, food waste, improper storage, change in supplier costs, not taking accurate inventories, theft/pilfer
what is JIT?
match purchasing with production for immediate use, not necessary to record in inventory; deliver only what needed, low inventory, fresh
inventory valuation methods?
actual purchase price, weighted average, FIFO, LIFO
what is weighted?
average of variations in unit price
what is FIFO?
cost determine what have on hand, reflect current items, common
what is LIFO?
assume items purchased meet demands of company, inventory reflect older items, gives you lower valuation
