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.