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NuFS 461 > Product Selection/Purchasing > Flashcards

Product Selection/Purchasing Flashcards

1
Q

What is procurement?

A

securing the food/supplies/equipment needed by the transformation subsystem

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2
Q

What are the 2 elements of procurement?

A

sourcing & purchasing

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3
Q

who/what is involved with sourcing?

A

contracts, supplier identification/management, requirements, RFQ

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4
Q

what is involved with purchasing?

A

receipts, invoice matching, purchase requisition/order

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5
Q

What must procurement activities do?

A

align w/ menu, consider budget, track foods moving in/through/out, respect policies/legislation

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6
Q

What are the 3 options a foodservice manager has for production of a menu item?

A
  • produce completely from raw
  • purchase some ingredients and assemble
  • purchase item in final form from wholesale
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7
Q

What is the ultimate influencer for food procurement?

A

decision to make or buy

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8
Q

What are the 4 considerations of make-or-buy decisions?

A

quality - form must align with needs
quantity - have to be able to get amount you need
service - have to have it if committing to serving it
cost - value analysis

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9
Q

What is a value analysis?

A

comparing the cost of making it yourself, different versions of making it, and of buying it pre-made

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10
Q

what are specifications?

A

detailed characteristics desired in a product for a specific use, safeguard the quality and tell vendor exactly what you need/want

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11
Q

what types of specifications are there?

A

technical - quality specifications (ie. sorting foods based on weight/size/quality)
approved brand - foods required using specific brands (ie. a certified gf brand cant be subbed for something that may not be guaranteed safe)
performance - ability to perform in a desired way (ie. certain concentration of kitchen cleaner)

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12
Q

what are the elements of a specification?

A

basic information - name, grade/brand, size, count/container, acceptable subs
writing criteria - all critical info, within availability of market, verifiable, realistic, able to be met by >1 bidder

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13
Q

what are the 9 steps in the procurement process?

A
  1. identify goods/services company needs
  2. submit purchase request
  3. assess/select vendors
  4. negotiate price/terms
  5. create purchase order
  6. receive/inspect goods
  7. conduct 3-way matching
  8. approve invoice/arrange payment
  9. keep recordsw
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14
Q

define 3-way matching

A

before issuing a payment its comparing the purchase order, invoice, and goods receipt to ensure they all match + have different people doing each check = eliminates fraud and provides a record

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15
Q

what is the goal of purchasing?

A

secure the products needed at the BEST PRICE of the best specified quality delivered as needed in a safe/sanitary way

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16
Q

what goes into selecting a purchasing method

A

considering size/philosophy/distributor location/storage facilities, determine purchasing volume/delivery frequency/available personnel

17
Q

what are the 2 main purchasing methods

A
  • informal purchasing
  • formal purchasing
18
Q

what are the buying methods in formal purchasing?

A
  • single sourcing
  • group purchasing
  • centralized purchasing
  • just in time purchasing
  • prime vendor agreements
19
Q

describe group vs. centralized purchasing

A

group = external, requires lots of collaborations between multiple smaller units that agree to buy together to achieve better prices/benefits, can mimic centralized

centralized = internal, one department controls all the purchasing for the system can have a lot of buying power

20
Q

what is informal purchasing

A

purchasing without agreements, going out to buy as you need

21
Q

how does a system identify their buying needs?

A
  • the menu
  • forecasted production needs
  • PAR threshold
22
Q

what is a PAR level

A

periodic automatic replacement
- min. amount of inventory needed to meet customer demand while maintaining cushion for unexpected demand
- aka: safety stock

23
Q

how to calculate PAR

A

calculate 20-30% more than the weekly invoice stock, keep that as safety stock

24
Q

why are purchasing records needed?

A

purchasing is the spending of an organization’s funds = all expenses must be tracked

25
Q

what are the 2 main forms of purchasing records

A
  1. purchase requisition = internal document from foodservice manager to procurement unit that authorizes and shares specifications for foods needed
  2. purchase order = document from procurement unit to the vendor that lists the items to be purchased
26
Q

what are the elements of a purchase requisition?

A
  • requisition number
  • budget account number
  • delivery date
  • quantity needed
  • specifications
27
Q

What does FOB stand for/mean

A

free on board
- indicates that price for goods + delivery is at the sellers expense
- used with an identified physical location to determine point where ownership passes from seller to buyer

28
Q

what is FOB origin vs FOB destination

A

FOB O: buyer assumes title before transportation = assumes risk of transport/responsible for claims or damage

FOB D: seller retains title until delivery = responsible for transport and filing claims or damage

29
Q

what are some ethics to consider in purchasing?

A
  • in healthcare: safeguard public funds
  • not accepting gifts from sellers
  • avoid conflicts of interest
  • act only in public interest/what is approved
30
Q

the activity that ensures products delivered are the ones that were ordered is what (including checking that they match specs/verifying item quality and price)

A

recieving

31
Q

what is the importance of receiving

A
  • minimizes mistakes with consistent routine procedures
  • ensures safety/quality of goods when dates are tagged
  • preserves quality and prevents loss
32
Q

what are the steps of the receiving process

A
  1. inspection against purchase order
  2. inspection against the invoice
  3. acceptance or rejection of orders
  4. completion of receiving records
  5. removal to storage
33
Q

an accurate list of deliveries + date, supplier name, quantity, and price data are all aspects of what and what do they provide

A

receiving record
- provides a critical checkpoint in the control system

34
Q

what are the 8 elements of receiving activity

A
  • competent personnel
  • facilities + equipment
  • specifications (for product standards)
  • critical controls in receiving
  • sanitation
  • adequate supervision
  • scheduled hours
  • security
35
Q

what is the link between receiving and production

A

storage

36
Q

what are some threats to storage

A

theft (premeditated burglary)

pilferage (inventory shrinkage)

37
Q

what is the humidity range for dry storage vs low-temp storage

A

dry: 50-60%

low-temp: 75-95% (85-95% for perishable foods)

38
Q

what is the process that is used to supply food to production units after it has been received

A

issuing

39
Q

what type of issuing is not ideal due to its lack of consideration for updated demand

A

direct issues

NuFS 461 (7 decks)

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