Procuring, Receiving, and Inventory Management

Question 1

Open-market buying

Answer 1

used by small FS; bid quotes via phone/fax

Question 2

formal competitive bid buying

Answer 2

specs are written and submitted to vendors so they may bid, usually sealed and opened on a certain date; clearly written with little misunderstanding regarding quality, price; time consuming

Question 3

fixed bid

Answer 3

price does not change during time period of the contract; usually used for large amounts

Question 4

daily bid

Answer 4

bids may vary based on supply and fluctuation of goods

Question 5

specifications

Answer 5

describes the product being purchased; may include grade, frozen/frozen, amount, etc.

Question 6

USDA grades

Answer 6

US Grade No.1 = wholesale fresh fruit and vegetables

US Grade A = canned, frozen, dried fruits/vegetable

USDA Grade A = eggs

USDA Prime, Choice, Select = beef grades (fat, juiciness, tenderness)

Question 7

No. 10 can

Answer 7

12-13 cups or 96-117 oz.

Question 8

No. 3 cyl can

Answer 8

5 3/4 cups or 51 oz. or 46 fl oz.

Question 9

No. 2 1/2 can

Answer 9

3 1/2 cups or 26-30 oz.

Question 10

No. 2 can

Answer 10

2 1/2 cups or 20 oz. or 18 fl. oz

Question 11

Prime vendor

Answer 11

agreement with single vendor to purchase majority of goods or product needs

Question 12

Group purchasing

Answer 12

independent foodservices with similar needs join to purchase together to receive increased choices and cost reductions due to large purchasing volume

Question 13

Centralized

Answer 13

appointed purchasing office buys goods for organization as a whole

Question 14

Centralized

Answer 14

appointed purchasing office buys goods for organization as a whole

Question 15

Independent

Answer 15

all department in the organization buy goods for themselves

Question 16

Just in time

Answer 16

purchase as needed for production w/out having to store products

Question 17

Type A Contract (exclusive)

Answer 17

buyer agrees to purchase from only one vendor/sellers generally for a specific period of time

Question 18

Type B Contract (partially exclusive)

Answer 18

buyer agrees to purchase from one vendor unless insubstantial supply then allowed to go to another vendor

Question 19

Type C Contract (open)

Answer 19

buyer may purchase with any vendor

Question 20

Dual A Contract

Answer 20

similar to type A contract but buyer is able to purchase from 2 vendor

Question 21

Primary vendor

Answer 21

majority of goods are supplied by one vendor

Question 22

Procurement decisions: product selections

Answer 22

based on equipment, staffing, budget, etc.

Question 23

Procurement decisions: cost analysis

Answer 23

categorizes cost to evaluate marketing activities and cost effectiveness of the current marketing activities

Question 24

Blind receiving

Answer 24

clerk uses a record form, which quantities are blocked out to record items actually delivered; good security measure to ensure products are checked in and documented accurately

Question 25

Invoice receiving

Answer 25

items are checked in by comparing delivering items to the purchase order

Question 26

Dry storage

Answer 26

temperature 50-70 F

humidity 50-60%

number of doors should be limited to increase security

Question 27

Refrigerator and freezer storage

Answer 27

Dairy, eggs, meat = 32-40 F

F/V - 40-45 F

Humidity = 80-95%

Freezer temps = -20-0 F

Question 28

ABC Inventory Method

Answer 28

A = Most expensive

B = Lesser value

C = lowest expense

Question 29

LIFO

Answer 29

last in first out

Question 30

FIFO

Answer 30

first in first out

Question 31

Mini-max system

Answer 31

establishes minimum and maximum amount of stock needed on hand;

Maximum level = order quantity + minimum level

minimum level = time to reorder

Question 32

perpetual inventory

Answer 32

on-going record of amounts on hand; incoming added to amounts on hand

Question 33

physical inventory

Answer 33

actual count of items at specified time. It is a good practice to take a physical inventory count at least once every year