Procurement, Production, Distribution & Service Flashcards
Informal, open-market purchasing
when a small amount is needed quickly
Formal, competitive bid buying
buyer requests quotes on specific amounts and qualities from one or more sources, opens the offers together and chooses lowest bid
Centralized purchasing vs. group or co-op purchasing
CENTRALIZED: personnel in one office does all purchasing for all units in that org, cost-effective and time-saving
GROUP: involves union of separate units (hospitals), not related to a single management, for joint purchasing; economic advantage of large volume purchasing
Types of written specifications
TECHNICAL: indicate quality by objective and impartial test results (graded food items, gauge of metals); can-cutting which is testing appearance, taste, flavor
APPROVED BRAND SPECS: indicate quality by specifying a brand name
PERFORMANCE SPECS: indicate quality by functioning characteristics of the product (pH level of detergents, how many dishes washed/min)
Buyer’s code of ethics
avoid collusion with vendors- decline gifts and favors that could compromise your ability to make objective purchasing decisions
Procurement decisions: determining needs
based on number to be served, size portion, amount of waste
How much ground beef should be purchased to produce 20, 4-oz. servings if it has a 50% yield?
4 x 20 = 80 ounces (5 lb EP)
5 / 0.50 = 10 lb
How many servings can you get from 9 lb raw meat with a 30% shrinkage if the serving size is 5 oz?
0.30 x 9 lb = 2.7 lb lost in cooking
9 - 2.7 = 6.3 lb = 100.8 oz.
100.8 oz / 5 ounces = 20.16 portions
Measurement conversions
look at list from FSM
Forecasting
MOVING AVERAGE: uniformly weighs past observations (numbers are weighted equally)
cases peaches used in July + August + Sept / 3
EXPONENTIAL SMOOTHING: uses software, gives more weight to recent values
Receiving: invoice
vendor’s slip that accompanies order
compare invoice against purchase order first, then items against invoice
Receiving: blind check
give clerk blind invoice or purchase order listing incoming merchandise but omitting quantities, weights
takes longer and costs more in labor
Fresh fish receiving
should arrive at less than or = 41 F
if there is any indication that frozen fish has been allowed to thaw, reject it
Dry storage
Temp 50-70 degrees F
humidity 50-60% (fresh f/v require 85-90%)
Refrigerated storage
<41 F
frozen is 0- -10 F
Inventory: fixed order quantity
determines the order point (when you must reorder the item)
average daily use) (lead time) + safety stock = order point (when the supply drops to this number you need to reorder
Inventory: mini-max method
stick is allowed to deplete to safety level before new order is placed. Established minimum and maximum amounts to have on hand
amount of item ordered with be the same every time