Purchasing In Food Services

Question 1

Purchasing

Answer 1

Process of getting the right food item into a food service facility at the right time and in a form that meets pre-established standards for quality, quantity, and price

Question 2

RIGHT

Answer 2

Quantity
Quality
Time
Source
Price

Question 3

Purchasing process

Answer 3

Identify needs
Determine standards of product quality
Estimate needed quantities
Calculate desired inventory stock levels for each item
Identify amount to order
Develop purchase order
Market research on vendor’s product availability
Select and negotiate with vendor

Question 4

Makes the decision regarding quality, quantity, and price

Answer 4

Buyer

Question 5

Usual buyers

Answer 5

Individual, purchasing department, cooperative arrangements

Manager, food service supervisor, chef steward, chief cook, purchasing agent

Question 6

2 types of purchasing arrangements

Answer 6

Cooperative
Centralized

Question 7

4 Is: Characteristics of the buyer

Answer 7

Intelligence
Information
Interest
Integrity

Maturity
Negotiation/bargaining skills

Question 8

Purveyor, vendor, supplier

Answer 8

Seller

Question 9

Considerations in purchasing

Answer 9

Institutional policies
Size of organization
Amount of money available
Frequency of delivery
Storage capacity

Question 10

Formal/competitive bid buying

Answer 10

Commodities purchased over time
Stable prices throughout the duration of the contract
Large contracts

Question 11

Process of formal or competitive buying

Answer 11

Bid requests are issued to vendors
Bids are sealed and opened at a later date
Test samples are requested from qualified bidders
Contracts are awarded to the most responsible and responsive seller with the most advantageous price

Question 12

Informal or open-market buying

Answer 12

Speed is required
Not large amounts

Question 13

Process of informal buying

Answer 13

Price quotations are regularly obtained from suppliers
These are recorded in price quotation and order forms
Buyer selects vendor. Both agrees on the price, quantity, and quality before delivery

Question 14

Used for purchasing readily available stocks with prompt delivery

Answer 14

Spot purchasing

Question 15

Shipment is at state intervals or as needed over a period at company’ s prices

Answer 15

Spot contract

Question 16

Goods are shipped in one delivery when picked at some future date, subject to price approval

Answer 16

SAP

Question 17

At stated intervals or as needed, subject to price approval

Answer 17

SAP Contract

Question 18

Seller supplies certain items for an agreed-on period based on fixed markup over the vendor’s cost

Answer 18

Cost-plus purchasing

Question 19

Single vendor will supply most product needs (expressed in percent of total use by category)

Answer 19

Prime vending

Question 20

Wide variety of products are locally supplied by the exact items, quantities and delivery requirements are unknown

Answer 20

Blanket purchase agreement

Question 21

Product is purchased in the exact quantities needed for production and delivered just in time to meet production demands

Answer 21

Just-in time purchasing

Question 22

3 principal food service needs

Answer 22

Perishable items - spoil without refrigeration (veg, fruits, eggs, MFP)
Staple items - can be kept without refrigeration
Daily use needs/contract items

Question 23

Accurate word picture of products

Detailed description of a product, stated in clear and simple terms

Requires knowledge of market forms

Answer 23

Product specifications

Question 24

Specification forms include

Answer 24

Name and description
Eq weight or measure per kilo
Number of servings per kilo
Uses

Question 25

Needed information for specifications

Answer 25

Name Grade or brand Unit at which price is quoted Name and size of container Count per container or approximate number per unit weight Sanitation standard

Question 26

Forms of food purchased

Answer 26

Convenience Conventional

Question 27

Types of convenience foods

Answer 27

Ready-to-serve Partially processed

Question 28

Determines best count, quantity, or weight

Answer 28

Raw food test

Question 29

Determines portion cost after waste, trim

Answer 29

Butchering test

Question 30

Formula for yield and yield %

Answer 30

Yield = AP - trim %Yield = yield/AP x 100

Question 31

Check yield and cost

Answer 31

Canned good test

Question 32

Portion cost as served plus evaluation of sensory attributes and portion size

Answer 32

Cooked test

Question 33

Shrinkage and %shrinkage

Answer 33

Shrinkage = Yield weight - cooked weight %shrinkage = shrinkage/yield weight x 100

Question 34

Refers to the wholesomeness, cleanliness, freedom from undesirable substances

Answer 34

Food quality standards

Question 35

Market classification of quality

Answer 35

Grade

Question 36

A particular make of a product identified by trademark or label

Answer 36

Brand

Question 37

Absence of bruises, wilted leaves, dents, etc

Answer 37

Conditions

Question 38

Records needed to determine the quantities to purchase

Answer 38

Food specifications Inventory form

Question 39

Inventory systems

Answer 39

Par stock system Mini-max system

Question 40

What is par stock?

Answer 40

Par stock is the required amount on hand at any given time.

Question 41

Describe the par stock system.

Answer 41

Stock is brought to the par stock each time an order is made, regardless of amount. Best for items that are used daily.

Question 42

Describe the mini-max system.

Answer 42

Includes a safety factor. Sets a minimum and maximum stock level. Stocks are depleted to minimum level before restocking. Commonly method for most items.

Question 43

Mini = Max =

Answer 43

Mini = (reorder stock + safety level) Max = reorder stock + estimated usage

Question 44

Perishables are purchased as __________ ____ ___________

Answer 44

often as possible

Question 45

You use _______ and ________-________ ___________ in purchasing.

Answer 45

Intuition; record-based decisions

Question 46

Allowance for safety stock

Answer 46

5-20%

Question 47

Formula for minimum stock

Answer 47

Perishables Mini = total requirements within a period + %safety factor Groceries and consumables Min = ADU x number of days of ordering period

Question 48

Formula for LTU

Answer 48

LTU = average daily usage x number of days before delivery

Question 49

Formula for max stock

Answer 49

Max stock = min. stock + safety factor + LTU same for both perishables and consumables

Question 50

Written request to a vendor to sell goods and services to a facility

Answer 50

Purchase order (PO)

Question 51

Interdepartmental form used to record desired products submitted to the purchasing department Tells you what is needed

Answer 51

Purchase requisition

Question 52

Documentation of available supplies Tells you what you have

Answer 52

Inventory form

Question 53

What contributes to higher food cost?

Answer 53

Incorrect inventory Incorrect requests Incorrect forecasting

Question 54

How to ensure food safety during production?

Answer 54

Purchase from reputable and reliable suppliers who follow GMP Purchase food by specifications (standards of quality) Purchase food in safe containers