Determining Purchasing Requirements

First step in purchasing goods

To work out what goods are needed, how much, and when.

Benefits of determining purchasing requirements

Helps avoid shortages, reduce waste, and control costs.

Par stock

The minimum level of stock required to meet normal operations.

Safety stock

Extra stock kept to cover unexpected increases in demand or delivery delays.

FIFO stock rotation principle

Using existing older stock first to prevent duplication, minimise waste, and ensure older stock is not forgotten.

Key forecasting methods

Historical data, reservations and bookings, menu analysis, and external factors.

External forecasting factors

Events, weather, holidays, and seasons.

Criteria for assessing stock on hand

Quantity, suitability (expiry and quality), and rotation.

Hidden purchasing costs

Additional expenses such as delivery, storage, and waste.

Elements of a purchase list

Product names, sizes, quantities, urgent items, and supplier delivery times.

Information sources for confirming requirements

Menus, function sheets, past data, POS reports, and consultations with chefs or supervisors.

Buying cycle final step

Reviewing usage and repeating the cycle.