Purchasing

The par stock order level for green beans is 11 cases. Orders are placed every Friday morning and received every Monday morning. On Thursday, there are 3 cases in stock, 1 of which will be used before the next order is received. A banquet is scheduled for next Wednesday, which will use 4 cases. How many cases of green beans should be ordered on Friday morning?

11

If an operation has a budgeted 32% food cost, which multiplier should be used to calculate selling price?

3.13

Refrigerated foods must be received at or below which temperature?

38°F (3°C)

In the restaurant and foodservice industry, the price of which item is subject to government price control?

Alcoholic beverages

Which action should be avoided in the purchasing process?

Backdoor selling

Which element of a contract refers to information NOT being shared with anyone?

Confidentiality

Which factor is important when evaluating a vendor?

Consistent quality

A customer count forecast can be calculated by using which of the following formulas?

Customer count last period + (Customer count last period × % increase expected)

Which type of purchasing process is in use at a small-volume operation that does NOT employ a full-time purchasing staff?

Decentralized

Which question should a purchasing manager ask before deciding to accept a holiday gift from a current vendor?

Does acceptance of the gift follow the operation's policies or code of ethics?

The product category "food and beverage" would include which items?

Dry goods, bottled water, and processed foods

Which agency will inspect a vendor?

Food and Drug Administration (FDA)

Which purchaser communication behaviors might cause a vendor to consider the purchaser to be a "problem account"?

Frequent emergencies, order changes, and last minute issues

Maintaining quality standards is most difficult with which item?

Fresh vegetables

Training staff, handling vendors, and cooperating with other managers are all which type of skill?

Interpersonal

Which purchasing system allows for products to be ordered and received close to when they are needed for production?

Just-in-time (JIT)

A national buying group is useful for which type of operation?

Large chain

After determining the needed product, what is the next step in developing product specification?

Learn about available products

Which best describes the advantage of cooperative buying?

Lower prices from suppliers

Which kind of analysis should a purchaser perform in order to discover the proper balance of quality and cost-of-production of selected menu items?

Make or buy

Which activity is typically a job responsibility of a purchaser?

Negotiating contracts with suppliers

Which of the following statements about food service in noncommercial facilities is true?

Noncommercial food service operators usually seek to minimize expenses while providing consumers with nutritious meals.

To calculate expected usage, what is used as the starting point?

Past sales trends

What is the most reliable way to find an appropriate supplier?

Previous experience with vendors

The purchaser must make sure there is storage room for the large amount of product before agreeing to receive which service from a vendor?

Quantity discount

Which is a benefit of using alternative purchasing sources?

Reduced per-unit costs are often available with increased purchase volume.

Costing a recipe and calculating order quantities is an example of which type of a purchaser's skills?

Technical

Which equipment is necessary to have on hand for an operation's receiving process?

Thermometers and scales

Alternative products and services are also known as

acceptable substitutes.

Quality standards are based on

an operation's requirements for products and services.

The main function of receiving is

checking and either accepting or refusing deliveries.

Purchasers can assure that vendors will provide specified quality by

checking incoming products in the receiving process and returning those that do not meet standards.

Some operations combine concerns and policies about purchasing ethics into a

code of ethics pamphlet.

An agreement made between two or more parties is called a(n)

contract.

Value perception is defined as a

customer's opinion of a product's value.

A signature dish is a menu item that

customers associate with a specific operation.

A benefit of using a broadline vendor for a product category is that it will

decrease processing time with fewer deliveries and invoices.

Product ownership is transferred from the vendor to the operation when the

delivery invoice is signed.

Stock-out occurs when an item has been

depleted from inventory.

One limitation with the par stock or par level approach is that it

does not consider the cost of food or ordering.

The calculation of the customer count forecast uses

either expected decreases or increases in historical counts.

Hastening the delivery of products that have been ordered but NOT yet received is known as

expediting.

One result of a properly implemented HACCP plan is that

hazards are monitored and reduced.

Specifying the exact name of the item or service an operation wants to buy will

help ensure that the correct item is received.

A qualified buyer is best defined as a(n)

individual with purchasing authority.

A preservation method that helps maintain the taste, texture, and nutrient values of fish or fruit is called

individually quick frozen (IQF).

When selecting a vendor, a purchasing manager should ensure that the vendor

is compliant with applicable local, state, and federal laws.

The rule of thumb regarding accepting kickbacks from vendors is that it

is often perceived as the most serious ethical violation a purchaser can commit.

When a purchasing manager is given a tropical vacation from a vendor in return for a purchase, this is known as a

kickback.

Money or other gifts received by an individual in return for purchasing from a specific vendor are called

kickbacks.

Some examples of differential pricing are

ladies night, senior discounts, and children's menus.

The primary objective of the purchasing function is to

maintain adequate supply.

The purpose of placing cost limits in purchasing specifications is to

maintain competitive position.

The process of assessing whether to prepare food from scratch or purchase as a partially or fully processed item is known as a

make-or-buy analysis.

Fresh whole tomatoes, tomato pieces of uniform size, tomato sauce, and tomato purée are examples of a food product in

market form.

Petty cash funds should be used for

minor, relatively low-cost purchases.

Purchasing in excessive quantities will result in

more product being at risk for theft.

A purchase requisition is defined as the details of a department's product

needs sent to the purchaser before the order is place

Purchasing can be best defined as the process of obtaining products and services

of a desired quality at a desired price.

A portable platform used to store and move products is a

pallet.

One of the two widespread approaches used when calculating optimal inventory amounts is known as

par stock or par level.

The market form indicates how an item is

processed prior to being packaged.

The required characteristics of a particular product or service are known as

product specifications.

The purpose of having a code of purchasing ethics is to

provide guidelines for behavior when making purchasing decisions.

When receiving a product delivery, the vendor's invoice should be compared to the

purchase order.

The par stock approach or par level inventory system requires the

purchaser to determine the level of inventory that must continually be in stock from one delivery date to the next.

A food buyer in a large chain operation would typically report to the

purchasing vice president or director.

The process of obtaining products and services of a desired quality at a desired price is known as

purchasing.

An agreement to buy from a vendor in return for some kind of business from that vendor is known as

reciprocity.

Most products should be stored at

shoulder height or lower.

Legally valid agreements consist of an offer, consideration, and

signatures.

Some operations allow their employees to buy products from the operation's vendors for their personal use at discounted prices. This is known as

steward sales.

One of the most important receiving procedures in an operation is

storing nonperishable items before perishable items.

A purchaser should conduct an evaluation of an operation's quality requirements by

talking and working directly with managers who use the purchased items.

Operations have a better negotiating position when

they purchase large quantities of a product.

Manufacturers use rebates as a selling point in order to introduce new products

to top buyers and enhance sales volume of existing products.

An agreement between two businesses in which the contract's consideration is NOT in the form of money is called a(n)

trade out.

In a free market situation, the parties who determine the prices for products are the

vendor and the buyer.

A vendor would offer a much lower price in a competitive bidding situation because the

vendor wants to break into the market.

When preparing for vendor negotiations, one tactic to consider is the operation's

wants and needs.

Perishable products are items that

will decay within a limited period of time.