Purchasing Chapter 3: Distribution systems
A GPO is a type of buying club.
True
A manufacturer's representative is also known as an outsourced field sales professional.
True
A wholesale club is also known as a cash-and-carry operation.
True
Architects, construction contractors, and designers provide similar functions to hospitality operations.
True
Food processors take one or. More food items and assemble them into a new end product.
True
Hospitality buyers sometimes purchase FFE items from leasing company on a rent-to-own plan.
True
In many states, liquor distributors are prohibited by tied-house laws from becoming primary sources for alcoholic beverages.
True
Manufacturer's representatives are more commonly found in the equipment trade than they are in the food distribution channel.
True
Prefabricated (pre-cut) meat will usually be more expensive to purchase that large wholesale cuts of meat.
True
The distribution of services differs from the distribution of foods and beverages because most sources of services are local.
True
There are more brokers working in the distribution of FFE than can be found working in the distribution system for food, nonalcoholic beverages, and non food supplies,
True
There are three major sources for alcohol products: brewers, winemakers, and distillers.
True
The purchasing agent who purchases from a primary source instead of an intermediary is engaging in: A. Direct buying B. Co-op purchasing C. Forward buying D. Bulk buying
A. Direct buying
Restaurants that feature food directly from the grower are known as: A. Farm-to-table operations B. Processors C. Specialty distributors D. Contract houses
A. Farm-to-table operations
Another term for convenience food is: A. Value-added B. Farm-to-table C. GPOs D. Raw food
A. Value-added
A buying club is a(n): A. Primary source for FFE B. Form of co-op purchasing C. Type of processor D. Illegal way to purchase supplies
B. Form of co-op purchasing
The primary difference between a control state and a license state is: A. There are less liquor licenses in a license state B. In a control state, the state is the only authorized alcoholic beverage distributor C. It is less expensive for ad bar owner to operate in a control state D. There are fewer brands of alcoholic beverages available in a license state.
B. In a control state, the state is the only authorized alcoholic beverage distributor
When you are considering which suppliers you should purchase from to buy products that you will be using for a large off-premises catering event, the one offering to deliver your paper products and other non perishable items to the event site for no additional charge is offering the following type of economical value: A. Form B. Place C. Packaging D. Information
B. Place
In a control state, the buyer most likely will have to purchase alcohol products from: A. Primary sources B. The Alcohol Beverage Commission C. Leasing companies D. Commissaries
B. The Alcohol Beverage Commission
Which of the following is false in regards to GPOs? A. They. Utilize many small, independent operations to gain buying power B. They get all the same discounts that are given to larger individual accounts C. They are locked onto long-term contracts and cannot change vendors D. All GPOs get nearly identical discounts, meaning the discounts are set and not based on static pricing
B. They get all the same discounts that are given to larger individual accounts
Kara has opened a small bakery where she will bake cupcakes, cookies, and made to order cakes. She does not need a large amount of inventory on hand at any one time. Where do you think she would by her grocery supplies from? A. A broad liner B. A commissary C. A wholesale club D. A broker
C. A wholesale club
The primary activity performed in a company-owned commissary is: A. Delivery and installation B. Offering leasing options C. Adding form value D. Providing financing alternatives
C. Adding form value
A ____ does not buy or resell products. Instead they promote products and put sellers and buyers in contact with each other. A. Wholesale club B. Catalog house C. Broker D. Grower
C. Broker
Which of the following is an intermediary in the distribution systems for beer, wine, and distilled spirits? A. A brewer B. A processor C. The Alcoholic Beverage Commission (ABC) D. A fabricator
C. The Alcoholic Beverage Commission (ABC)
Which of the following is an intermediary in the FFE distribution system? A. A manufacturer B. A processor C. A grower D. A catalog house
D. A catalog house
Which one of the following is not a primary source? A. A brewer B. A processor C. A grower D. A designer
D. A designer
Which one of the following is a type of FFE dealer? A. Storefront dealer B. Heavy equipment dealer C. Catalog house D. All of the above
D. All of the above
Among the most valuable things that brokers offer are: A. Critiques B. Purchases C. Sales D. Information
D. Information
Which of the following economic values tends to be the least understood and, quite often, the most controversial one? A. Time value B. Form value C. Place value D. Information value
D. Information value
Another term for a distributor is: A. Broker B. Fabricator C. Manufacturer D. Merchant wholesaler
D. Merchant wholesaler
A catalog house specializes in large equipment installation and help in the design and layout of new or renovated hospitality operations.
False
An example of the economic value known as "form" is to specify that you require lettuce that is only 24 hours removed from the field.
False
An importer-wholesaler that imports alcohol beverages is not allowed to act as a liquor distributor.
False
Brewers produce bourbons, scotches, and other similar high-alcohol-content items.
False
Brokers buy and resell products.
False
Buying clubs are also referred to as cash and carry operations.
False
Full-time buyers usually fave complete control over deciding which economic values their companies should provide for themselves.
False
Hospitality buyers are never to deal directly with primary sources.
False
