Procurement, Receiving, Storage, And Inventory Flashcards
Standardized recipe
Allows us to know exactly what we need to purchase while ensuring similar quality with taste and nutrition
Value analysis
Investigation of all components of an existing product or service with the goal of discovering and eliminating unnecessary menu items without interfering with the effectiveness of the product or service
Forecast production demand: historical record
Past customer counts, number of menu items prepared, sales record, consider day and date, meal, special event, food item prepared, quantity prepared in quantity served
Time series
Follows an identifiable pattern over time
Causal
Factors such as selling price cause demand
Subjective
Relevant data is scarce, at a new site, estimate
How to select a purchasing method
Determine purchasing volume Determine frequency of delivery Consider distributors location Evaluate department storage facilities Determine available personnel Consider size and philosophy of operation
Actual vendor selection varies due to:
Delivery schedules Payment policies Contingency plans Value added services Credit
Special inventory
Things that are delivered specifically for business
Past activities of payment
Deals over time if you pay ahead
Contingency plan
Change the menu, have vender make a special delivery
Value added services
Writing for modifying menus for you
Prime vendor
Where you buy best majority of food products, promise to buy large portion of foods, get better buy
Three basic forms of purchasing
Cherry picking
Competitive bid
Prime vendor
Contract: cherry picking
None
Contract: competitive bid
Shorter, months to years, sets the price constant, easy to police include; only set # of items
Contract: prime vendor
Longer, years, harder to police, covers more items than competitive bid contescts
Price: cherry picking
$ amount, street sales, mark up depends on volume
Price: competitive bid
$ amount: mark up depends on volume but bid is designed to below enough to get the award
Price: prime vendor
Cost + percentage
Time commitment: cherry picking
Varies
Time commitment: competitive bid
Varies depending on procedure at institution
Time commitment: prime vendor
Very high at contract renewal time
Distributor sales rep: cherry picking
Street salesman paid on commission
Distributor sales rep: competitive bid
contract manager or national sales paid on commission or salary
Distributor sales rep: prime vendor
Account manager, paid salary
Institutional representative: cherry picking
Anyone who places an order
Institutional representative: competitive bid
Purchasing department, purchasing agent
Institutional representative: prime vendor
Purchasing department, purchasing agent
Food specifications: cherry picking
Buyer must be knowledgeable about product lines
Food specifications: competitive bid
buyer must have very specific product specs
Food specifications: prime vendor
Buyer provides general specs
Group purchasing organization
Members are individual organizations, different management, meet to establish policy, acts as agents in negotiation price, a membership fee is required, may have prime vendor
Advantages: price volume, streamlined paper, freedom from sales rep
Just in time inventory system
Inventory represents money in the form of food, supplies, and small equipment
Inventory control
Keeping the size of the inventory at a level appropriate for the facility and ensuring the security of the goods on hand
Cost of food available =
Beginning inventory + purchased food
What was wasted =
Cost of food available - ending inventory
Inventory turnover
Total cost of food per month/average of food inventory
$10,000 (food used in a month) / $1500 (food inventory) = 6.67
Perpetual inventory
Continuously monitored record of stock on hand - balance sheet
Food on hand =
beginning inventory + food purchased
Food used =
Food on hand - final inventory
Physical inventory
To check for accuracy (theft), other reason
Requisition
Getting food out of storage (assigned person)
ABC method of inventory
Classifies products according to their value (a = most expensive)
FIFO (based on new prices), LIFO (based on old prices), actual cost
To determine order quantity
Forecast menu portions, do standard portions, determine serving supplies, assess food on hand
Min/max purchasing system
Point you know when to buy, when you get low
Lead time
Days before you order (order when inventory gets low, order for a month) –> driven by level of product
Par ordering
Always keep the same amount or each item, order to a level from the order date (done at even small places) –> driven by day you order
Obtain bid/price quotes
Develop specs for each item; obtain best prices/terms
FOB origin
Buyer owns during the transportation
FOB destination
Buyer owns when the order is received
Ingredient room
Central location for measurement, where foods for recipes are assembled, assemble all ingredients measured exactly for the person the next day cooking it
Benefits of ingredient room
Controls who requisites the food, controls product and how it’s made, helps with waste
Scoops
The number of a scoop is the number of portions per quart
8 = 8 portions per quart or 1/2 cup each
Profit center
Department that generates revenue greater than its expenses and creates profit for the organization
Cost center
Department that has expenses but does not generate profits to cover those expenses
Producer
Someone who produces raw food to sell
Processor
Organization that takes raw food items in transforms them into packaged products for sale to consumers ot food-service operators
Distributor
Wholesaler responsible for transferring products from the processor or manufacturer to the supplier
Wholesaler
Distributor that purchases from various manufactures or processors, provide storage, sells, and delivers products to suppliers
Broker
Independent sales and marketing representatives who contracts with manufacturers, processors, or prime source producers to sell and conduct local marketing programs with wholesalers, suppliers, or food service operations
Manufactures representative
Distributor who represents a manufacturing company and informs suppliers of products by this manufacturer
Supplier
Organization that offers products for sale
Standards Of identity
Federal standards that identify what a given food product contains
Standards of quality
Federal standards for product quality attributes such as tenderness, color, and freedom from defects
Irradiation
Exposure of foods to gamma rays are radiant energy to reduce harmful bacteria
Value analysis
Methodical investigation of all components of an existing product or service with the goal of discovering and eliminating unnecessary costs without interfering with the effectiveness of the product or service
Specification
Statement understood that buyers and suppliers of the required quality of products, including allowable limits of tolerance
Technical specification
Specification that indicates quality by objective and impartial test results
Approved brand specification
Specification that indicates quality by specifying a brand-name or label
Performance specification
Specification that indicates quality by functioning characteristics of the product
Bid buying
Buyer decides which supplier will be chosen for the order based on bids submitted from the seller
Bid
A price quotation from seller
Law of agency
Buyer’s authority to act for the organization, the application each of the other, in the extent to which each maybe you held liable for the others actions
Law of warranty
Guaranteed by the supplier that an item will perform in a specified way
Law of contract
Signed agreement between two and more parties related to the purchase of a product or service
Invoice
Document prepared by the supplier that includes product name, quantity, and price
Requisition
Form used a food service manager to request items from purchasing manager or department
Purchase order
Document completed by the fire and given to the supplier listing items to be purchased
Receiving
Activity for ensuring that producs delivered by suppliers are those that were ordered
Elements of receiving activity
Competent personnel, facilities and equipment, specifications, critical critical controls and receiving such as sanitation, adequate supervision, scheduled hours
Receiving process
Inspection against the purchase order, inspection against invoice, acceptance or rejection of orders, completion of receiving records, removal to storage
Ethics
Principles of conduct governing an individual or business
Code of ethics
Set of rules for standards of professional practice or behavior established by a group
No 10 can
12 cups
