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