Comprehensive Guide to Procurement, Storage, and Inventory Management in Food Service

What is the first step in the basic procurement process?

Determine what an operation wants and needs to buy.

What are specifications (specs) in procurement?

Detailed descriptions of all the characteristics required to fill a purchase need.

What is a requisition?

A formal request for items to be ordered or used from storage.

What is the role of a buyer in procurement?

To know everything about the operation, including menu items, pricing, and regulations.

What is a kickback in the context of procurement?

Money or goods received by a person in exchange for purchasing from a specific vendor.

What are the goals of a buyer?

Maintain the right supply of products, ensure quality standards, minimize spending, and stay competitive.

What tools can help a buyer maintain the right supply?

Customer count indexes, popularity index of items sold, vendor delivery schedules, and availability of items.

What is the difference between formal and informal buying?

Formal buying follows a request for proposal (RFP) method, while informal buying involves direct quotes from suppliers.

What is a purchase order?

A document used to order products once a supplier relationship is established.

What economic factors affect food prices?

Time value, form value, place value, transportation value, and service value.

What is a commodity in procurement?

An economic good that is a product of agriculture or mining, such as corn or wheat.

What is commodity pricing risk?

The threat that an increase in the price of a commodity will increase the price of using that commodity to produce other goods.

What factors affect commodity prices?

Political regulations, seasonal variations, weather, technology, and supply and demand.

How is quality determined in procurement?

By the value or worth that customers place on a product or service.

What factors influence the quality standard in procurement?

Intended use, operations concept and goals, menu, employees' skill level, budgetary constraints, and seasonal availability.

What is a specification sheet used for?

To specify details such as brand name, color, intended use, market form, packaging, and USDA grade.

What is a make or buy analysis?

A decision-making process to determine whether to make a product in-house or buy a ready-made version.

What is the importance of communicating standards to vendors?

To ensure that the quality standards are met consistently.

What does minimizing waste in procurement involve?

Maximizing yield or total utilization from products purchased.

What is the significance of assessing the cash position of a business?

To determine how much physical money is available for spending.

Why is it important for buyers to stay competitive?

To shop around for vendors that provide the best value in quality and services offered for the price charged.

What is the primary purpose of analysis in food production?

To balance how much food a kitchen produces with the quality standard of the operation.

What are the advantages of using ready-made food items?

Consistency, lower prep time and labor costs, and reduced need for equipment and storage space.

What are the disadvantages of using ready-made food items?

Higher cost and potential loss of competitive advantage from a 'home-made' standpoint.

What should you consider when evaluating ready-made items?

Quality comparison, true cost of raw materials, storage space availability, frequency of purchase or production, and employee skill level.

What are production records (PR) used for?

To forecast buying needs and determine supplier delivery capabilities.

What does a production sheet include?

Prepared daily by chefs, it helps spot signs of stock-outs and overproduction.

What is the purpose of daily cost sheets?

To maintain ongoing records of daily and monthly food costs for an operation.

What do sales mix records track?

Each item sold from the menu, which can be tracked daily, weekly, or monthly.

What does PAR stock represent?

The ideal amounts of inventory items that an operation should have at all times.

How do you calculate the amount to be ordered?

Amount to be ordered = PAR stock - Amount in stock (inventory).

What is a reorder point?

The stock level that alerts the operation to make orders immediately.

What is the receiving process in inventory management?

Inspecting, accepting, and sometimes rejecting deliveries of goods and services.

What is a key drop delivery?

A practice allowing safe delivery of products when the establishment is closed, typically between midnight and 6 AM.

What should each delivery include?

An invoice or receiving form that lists items and prices.

What is the product rejection process?

Set aside the rejected item, inform the delivery person, obtain a signed adjustment memo, and log the incident.

What are the two types of products in inventory?

Perishable and non-perishable products.

What does JIT format stand for?

Just In Time format, preferred for ordering perishable products to arrive just as previous stock runs out.

What are the three types of storage areas?

Dry storage, refrigerator, and freezer.

What is the ideal temperature range for dry storage?

50°F to 70°F.

What temperature should TCS foods be stored at in the refrigerator?

41°F or lower.

What is the ideal temperature for a freezer?

0°F or below.

What is the physical inventory method?

A method where the entire stock is physically reviewed regularly to determine reorder points.

What is the perpetual inventory method?

An inventory method where items are recorded when received and used up, maintained on logs or electronically.

What is the purpose of a requisition form?

To officially document the procedures for taking items out of the storeroom for production.

How is inventory shrinkage calculated?

The difference between the total cost of food and the cost of goods issued during the period.