PURCHASING METHOD

Question 1

The process to acquire goods or products to accomplish certain operation.

Answer 1

Purchasing

Question 2

Common purchasing method used by independent restaurants usually operating in a small scale.

Answer 2

Competitive Quotes

Question 3

or long-term arrangement between a supplier and firm where buyer agrees to purchase certain goods from a supplier regularly.

Answer 3

Standing Order

Question 4

The level that must be continually in stock from one delivery to the next.

Answer 4

PAR

Question 5

number or amount of item typically used in a day

Answer 5

ADU (Average Daily Use)

Question 6

The time it takes for the supplier to deliver new stock once order is placed.

Answer 6

Lead Time

Question 7

An additional buffer quantity kept to account
for unexpected demand or supplier delays

Answer 7

Safety Stock

Question 8

• It involves PURCHASING MOST, IF NOT ALL, of an operation’s goods FROM ONE SUPPLIER. Allowing the buyer to acquire everything the operations need in one place.

Answer 8

One-Stop Shop

Question 9

A method where the buyer agrees to pay the actual cost of the goods plus a fixed percentage markup or fee to the supplier as profit.

Answer 9

Cost-Plus Method

Question 10

Usually used for large contracts such as hospitals and government procurement where suppliers can submit confidential bids for supply of goods and the buyer select the most favorable bid.

Answer 10

Sealed Bids or Blanket P.O

Question 11

Preparation and distribution of goods for multiple locations, ensuring consistency but requiring significant initial investment.

Answer 11

Commissary