Topic B: Procurement, Receiving, and Inventory Management Flashcards
____________ involves receiving, purchasing, inventory control, and storage
Procurement
_____________ uses the same process as _____________ but scores the bidders based on established criteria
informal procurement processes; formal procurement processes
_____________ is a type of formal procurement that uses an invitation to bis
competitive sealed bidding
_____________ is a type of formal procurement process that uses a request for proposal
competitive negotiation
The steps for informal procurement processes are:
- Identity sources eligible, able, and willing to provide products
- Contact sources
- Evaluate bidders response
- Determine the most responsive and responsible bidder at the lowest price
Develop specification in writing
The steps for informal procurement processes are:
- Develop specification in writing
- Contact sources
- Evaluate bidders response
- Determine the most responsive and responsible bidder at the lowest price
Identify sources eligible, able, and willing to provide products
The steps for informal procurement processes are:
- Develop specification in writing
- Identity sources eligible, able, and willing to provide products
- Determine the most responsive and responsible bidder at the lowest price
- Contact sources
4. evaluate bidders response
A ___________ is an independent sales representative who contracts with certain manufacturers, processors, and prime source producers to arrange transactions between the two parties
Broke
Does not keep inventory
A __________________ sells the manufacturer’s products to wholesale and retail customers
Manufacturers representative
_________________ should be developed to ensure consistency of price, product quality, operational function, and fit for purpose
Specifications
are provided to potential bidders and a contract is agreed upon with those specifications
_________________ is when food service operations create collective buying power to purchase more products at a lower price
Group purchasing
aka Group Purchasing Organizations (GPOs)
A __________________ is a pricing contract that a supplier offerings to a business on products they frequently buy
prime vendor agreement
Used when a single vendor provides a customer with a majority of purchases
A _________________ is generally used by the food service manager to request items from the purchasing manager
requisition form
__________________ is a receiving method in which you give the receiving clerk and invoice or a purchase order that lists the items but not the quantity, weight, or price
Blind check receiving method
__________________ means that the liability and title possessions of the items ordered shift to the customer when the shipment leaves the point of origin
Free on Board
__________________ is a type of inventory system that takes into account the relative importance of inventory items based on their activity level
ABC inventory classification system
Looks at what percent of inventory an item contributes along with how much it contributes to the annual total of purchases
______________ is a type of item in the ABC inventory classification system that makes up 10-20% of the total number of items kept in inventory but makes up __% to __% of total value purchases
A items
60%-80%
______________ is a type of item in the ABC inventory classification system that makes up 50% to 60% of total inventory but makes up __% to __% of total purchases
C items
5% to 10%
_____________ is a type of inventory in which a running balance of inventory is kept on hand
Perpetual inventory
Records for each product are maintained with the date that the items were receiving, the date the items were removed, the reorder point, purchase unit size, and par stock all in one place
Time consuming
_____________ is a type of inventory which is completed one a month with physical counts recorded on a spreadsheet including the product name, unit size, count, and total value
Physical inventory
_____________ is how many times a month inventory is transformed into revenue
Inventory turn over
also tells you how many weeks supply you typically have at a time