question

Advantages of co-op purchasing

answer

Lower AP price, strong negotiator, cost and quality control

question

Disadvantages of co-op purchasing

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Lowest AP price may not be lowest EP price; you may not be able to get exactly what you want if others don't want it

question

Terms for co-op purchasing

answer

Communal buying, shared buying, group purchasing organization, aggregate buying group

question

A franchisee must purchase from a franchisor's

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Specific specifications

question

Who employs a full-time receiving agent in a large independent hospitality operation?

answer

Accountant

question

What is a national contract with a primary source?

answer

Large hospitality organization

question

What kind of contract covers the AP price each restaurant in a large hospitality corporation must pay?

answer

National contract

question

Who would be in charge of ordering and receiving merchandise in a small operation?

answer

Owner-manager

question

What is a kitchen steward?

answer

Manager who has food-buying responsibilities; may also be responsible for food storage

question

What are the responsibilities of a VP of purchasing?

answer

All purchasing activities--set purchasing guidelines, negotiate contracts, research vendors and products, and perhaps oversee distribution

question

Advantages of centralized purchasing are

answer

presence of a strong negotiator, cost and quality control, cost reduction

question

A salesperson consulting with the user of a piece of equipment instead of with the buyer is an example of

answer

Backdoor selling

question

What restricts a buyer's purchasing authority?

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Quantity limits, price limits, approved suppliers

question

Buyers typically undergo two types of performance evaluations; operational and

answer

Procurement

question

What are major potential conflicts that can occur between buyers and hourly employees?

answer

Major conflict occurs when a buyer tries to exert control or authority over employees someone else supervises

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What are the three main areas of the job specification for a purchasing employee?

answer

Technical, interpersonal, conceptual

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What discounts are legal for the buyer to accept from food suppliers?

answer

Quantity, volume, cash & promotional; cash and promotional are risky

question

List interpersonal skills

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Conducting a performance appraisal, interviewing a sales representative, training an employee, handling a customer complaint

question

The inventory turnover is equal to

answer

Actual cost of products used or sold/average inventory level kept at the operation

question

What should the approximate food, beverage, and nonfood supplies inventory value of a full-service restaurant be?

answer

1% of annual sales volume

question

A good rule of thumb in the restaurant business is that the value of the food inventory should not exceed approximately one-third of the:

answer

Normal month's total food costs

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What lists the duties to be performed for a particular position in a company?

answer

Job description

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What are qualities that would be listed in the typical job specification for buyers?

answer

Technical, interpersonal, conceptual

question

The materials budget procedure is most likely to be used by a hospitality operation that:

answer

Serves a captive audience; employee feeding, college feeding, hospital feeding, prison feeding, etc.

question

What is an objective of the purchasing function?

answer

Maintain and set rigid quality standards for produce; looser for other foods

question

If you pay your bill before the due date, you may be able to obtain a:

answer

Cash discount

question

Paying an invoice on the day the shipment is delivered may result in a:

answer

Cash discount

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To obtain a quantity discount, an operator agrees to buy a large amount of an item. To obtain the volume discount, he or she agrees to buy:

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A huge volume of goods, but more than one type of merchandise

question

A discount granted by a supplier if the buyer agrees to purchase a large amount of one type of product is referred to as a

answer

Quantity discount

question

Reciprocal buying refers to

answer

"You buy from me, I'll buy from you" (or do something special)

question

A stock-out is intolerable to a buyer's company primarily because:

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If you cannot provide a product, the customer will probably go elsewhere, not return. Plus, their opinion of your operation will worsen and they will not recommend you to others

question

Give an example of a technical skill

answer

Creating/costing a recipe, preparing a recipe, preparing a work schedule developing job descriptions

question

The ability to cost out a menu is considered to be what kind of skill?

answer

Technical

question

One of the advantages of specifications is

answer

They serve as quality control/cost control standards, help avoid misunderstandings and allow others to fill in for the buyer temporarily

question

A food processing plant normally must undergo continuous government inspection for wholesomeness if

answer

They sell meat/poultry/eggs

question

Who usually helps write food product specifications?

answer

Owner-manager, buyer, users

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Frozen products should come in packaging sufficient to withstand the extreme cold without

answer

Breaking

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The major criterion a federal government inspector evaluates when grading a food item is

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Appearance

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What is a measure of quality used by foodservice buyers?

answer

Price, quality, amount, time, will it meet objectives?

question

What is misrepresenting product identification on your foodservice menu?

answer

Illegal; violating truth in menu standards

question

The NSF International approval seal on a piece of equipment indicates that the equipment

answer

Meets its standards for sanitation

question

The objective of bid buying is to obtain

answer

The lowest possible AP price

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A packer's brand

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Is an indication of quality

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A food item's point of origin is an important purchasing a menu planning consideration because

answer

Flavor/texture can vary between growing regions; may want to support local sources; must tell the truth in a menu; freshness; illegal/cannot violate company policy; must purchase from a reputable supplier

question

Poor packaging materials, as well as poor packaging procedures, can

answer

Result in rapid deterioration of a product

question

Another term for product specification is

answer

Product identification

question

What information should be included on a product spec?

answer

Quality, package size, time, etc.

question

A description of all the product characteristics required to fill certain production and/or service needs may be referred to as a

answer

Purchase specification

question

In order to decide quality standards to include on a spec, buyers must be sure to measure the types of quality standards that

answer

His or her customers expect

question

What is considered the most important piece of information to include on a spec?

answer

Intended use

question

Writing specs that are too tight tends to

answer

Waste time and money

question

What is normally not included in a product spec?

answer

Edible portion cost

question

Specs that are too tightly written most often lead to

answer

Spending a lot of time, money, and effort writing specs and letting bids only to find that just one supplier meets them and they must take it or leave it. Then the supplier can ask however much they want for the product

question

What must be included in a product spec?

answer

Description of all the characteristics in a product required to fill a certain production or service need

question

What would be the most important consideration when determining what type of information to include on a spec?

answer

Goals and policies of the organization

question

Specifications that request a quality that is very difficult for suppliers to provide can often add to a product's

answer

Edible portion cost (but not always its value)

question

What are US grades

answer

Rating system used by the federal government to indicate the quality of food products (not all foods are graded)

question

The USDA can inspect food items when they are in the hands of

answer

Any member of the channel of distribution

question

The primary function of the USDA Acceptance Service is:

answer

To help prepare specs. They will stamp every item/package to certify product compliance. They will inspect according the buyer's specification.

question

Private label brand strategy was developed and pioneered by which company?

answer

Cisco

question

Some examples of quality levels of private label brands might include

answer

Supreme, imperial, classic

question

Which one items are sold by count?

answer

Apples, fruit, dinner rolls, specialty steaks, cornish game hens

question

The correct order size is influenced by two costs. They are:

answer

Ordering cost and storage cost

question

The interval of days between the time an order is placed and the time it is delivered is referred to as

answer

Lead time

question

The Levinson approach to ordering is generally used when purchasing merchandise that will be used

answer

For specific parties and banquets

question

Which formula is used to calculate PD?

answer

PD = PF x edible yield percentage

question

To compute an accurate ROP for an item, the buyer must have a good idea of that item's

answer

Usage pattern

question

The safety stock level is sometimes referred to as the

answer

ROP (Reorder point)

question

Under par stock approach, if the buyer thought that there was going to be more business than normal, he or should

answer

Raise the par; increase order size by ordering a safety stock

question

Another term for storage cost is

answer

Carrying cost

question

What is the most accurate method of determining a product's edible yield percentage?

answer

Use the product for awhile; conduct your own study and compute an average of unavoidable waste

question

When seeking a lower AP price for a product, a buyer's emphasis should be on

answer

Quality (increasing value)

question

A blanket order is a form of

answer

Volume discount

question

The point at which the AP price per unit is reduced by the supplier is referred to as the

answer

Break point

question

Another term for cash rebate is

answer

Coupon refund

question

The EP cost is equal to the AP price divided by the

answer

Edible yield percentage

question

A foodservice operator should ensure that the amount of sales traded does not exceed what (when using the exchange bartering procedure)

answer

10-15%

question

The primary purpose of the hedging procedure is to

answer

Maintain a specific AP price

question

What is cost-plus purchasing arrangement?

answer

AP cost = supplier's cost + an agreed upon profit markup

question

The cost used by the supplier may be referred to as the

answer

Landed cost

question

A major advantage of the one-stop shopping concept is

answer

Reduction of ordering cost

question

A buyer may be able to earn a price discount from a supplier if he or she is willing to

answer

Purchase used items, order a lot, blanket order, pay with cash

question

Which pricing procedures do suppliers prefer?

answer

Buyer pricing

question

Buying food salvage or food from unlicensed purveyors is

answer

A violation of public health codes (local health codes)

question

Purchasing damaged goods is sometimes referred to as

answer

Salvage opportunity

question

"People don't hedge enough. Hedging is an appropriate way to mitigate risk when making financial plans for the future" is a quote by

answer

Glenn Millar

question

Dairy products (along with other commodities) are publicly traded on

answer

Chicago Mercantile Exchage

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