1. CHAPTER 5 PURCHASING AND INVENTORY

2. What is the first thing that a person needs to do purchasing? (288)
Make sure that an operation has enough product to sell.

3. What is the purchasing document that describes the characteristics of products and services that an operation wants to buy? (288)
Product specifications

4. There are many tools available to help purchasers buy the right amount of product. They are: (288)
Customer count histories
Popularity index of items sold
Vendor delivery schedule
Availability of items from vendors
Recognizing outside influences that might affect an operation

5. What is the amount of funds available to an operation at any given time? (289)
Cash position

6. What is a customer count forecast? (289)
This is the number of customers expected for a given time period

7. According to Table 5.1, there are 3 main parts to the channel of distribution. Please let me know what they are and give me examples of each

8. Primary Sources
Farmers
Ranchers
Manufacturers
Distillers

9. Intermediaries
Wholesalers
Distributors
Suppliers

10. Retailers
Restaurants
School cafeterias
Caterers

11. Farmers belong to what part of the food distribution channel? (291)
Primary Source

12. What is another name for capital? (297)
Assets

13. What are specialized, written price lists created for the restaurant by a supplier? (300)
Bids

14. Please explain what a kickback is. (301-302)
Money or other goods received by a person for purchasing from a specific vendor

15. Please list the 3 reasons why a foodservice operation would purchase ready made products? (313)
Consistency– A buyer knows exactly what they are getting.
Reduces prep time and labor costs
Reduces the need for certain types of equipment and storage space that might be otherwise necessary to make something from scratch

16. Why would a chef conduct a make or buy analysis? (313)
To decide whether it makes better financial sense to make the item from scratch or to purchase a ready made product.

17. All of the items that we produce in class are listed on what form
Production Sheet

18. List 3 elements of production records. (314)
Production sheets
Daily food cost sheets
Sales mix records

19. What is it called when an operation runs out of a food? (314)
A stockout

20. What is the term used for the ideal amount of an item to have on inventory at any given time? (316)
Par stock

21. What is a legally binding written document that details exactly what the buyer is ordering from the vendor? (316)
Purchase order

22. In a large operation, what form does a manager need to compete to purchase a new refrigerator? (318)
Requisition form

23. As a product moves through the channel of distribution, what 5 factors affect its value? (318-319)
Time value
Form value
Place value
Transportation value
Service value

24. What is the process of inspecting, accepting, and, in some cases, rejecting deliveries of goods and services? ( )
Receiving

25. What are food products that are sold or distributed in a form that will spoil or decay within a limited period of time? (329)
Perishable products

26. What is a record of all products an operation has in storage and in the kitchen? (333)
Inventory

27. What are the 2 common methods for purchasing nonperishable foods? (334)
Physical inventory method
Perpetual inventory method