Quiz 2 Purchasing and Inventory Flashcards
What are the aspects of material managment?
Purchasing of goods
Handling
Storing
Distributing
Valuation
Control
Procurement
Having the right materials at the right amount at the right time in the right place and at the right price.
Who is responsible for procurement?
Material Management Department = non-perishable goods
Foodservice department = perishable goods
Purchasing Authority
The amount a manager can spend or utilize their procurement
What is the used for the basic plans for all food service establishments and determines means for purchasing and other aspects of the business? Also the basis for procurement.
Menu!
Types of menus
Single-use- used once
Static- large menu that stays
Cycle- menu that varies from day-to-day but then repeats after an allotted amount of time.
Methods of purchasing
Prime vendor- One main big vendor but there can be other small vendors for smaller purchases
Cooperative- multiple organizations pitch in to get a lower price
Multiple vendors- the purchaser utilizes multiple vendors. This can get pricy
Bidding- the purchaser takes the lowest bid from suppliers
Capital plus- the purchaser pays the vendor for goods + handling and profit fees
Warehouse Club- is done by the purchaser itself. Like Costco.
Retail- the purchaser uses small vendors like grocery stores.
Purchasing Specifications Include
Item Description- item name/brand
Form- how the product should come including size or weight
Quality- describes the standard for quality, example would be grade or nutritional content
Quantity- how many should come
Purchasing Price- based on weight, size, case #, volume, etc
Capital Equipment Specs include
Performance Specs- describe pre-heating time, energy usage, etc
Technical Specs- describe weight, size, etc
Potential problems with specs
broad grades, unusually high standards, the employees ability to understand, inadvertent discrimination (biased to certain suppliers)
Types of receiving methods
Invoice - specs are listed
or Blind - must write in what was received and is done by two people
Importance of documentation
done using the invoice or packaging slip
ensures that if something is rejected, returned, or back ordered that the purchasing agent does not buy it twice.
Importance of storing
must be stored at the right temperature/environment
Must use stock rotation (FIFO)
Inventory description and steps in the process
Process of determining goods on hand
- determine what is on hand
- distribution of inventory/ how to account for them
- determining value of goods
Physical vs Perpetual inventory
Physical is done by two people- one counting and one documenting
Perpetual is done by a computor and documents daily what goes in and what goes out.
