Food Purchasing

A menu that repeats itself according to a predetermined pattern is referred to as a

cycle menu

Which one of the following is an example of misrepresenting product quality on your menu?

Noting that you serve prime rib when in fact you are serving a choice grade of beef.

The opposite of a fixed-price menu is the

a la carte menu

Before you buy anything, you have to know what you’re planning to sell. True or False

True

A food item’s “point of origin” is an important menu planning consideration because

It may have a significant impact on the item’s taste and texture, you might want to indicate on the menu where the food item comes from, it can have an impact on the culinary quality of the item. (All of the above)

A standard of identity

Defines what a product must be in order to be called a certain name.

What you sell has to be consistent with the cooking philosophy of you and your staff. True or False

False

Which one of the following should the chef consider when planning a menu?

Restaurant layout and design, type of equipment available, and skill of staff. (All of the above)

A description of all the product characteristics required to fill certain production and/or service needs is called a

product specification

Who tends to write the specs in most independent operations?

Buyer and seller, working together

Writing specifications that are too tight tends to

Waste a lot of time, money, and effort

A product specification for hot dogs could include the following information

Type of quality, size of product, package size. (All of the above)

Another term for expiration date is

Sell by date, freshness date, pull date. (All of the above)

Poor packaging materials can

Seriously harm the quality of the product

Recipes should be standardized after the purchase order is placed to ensure that the menu aligns with what will be available for production. True or False

False

A standardized recipe refers to any recipe that has been tested by the chef, even those kept in private files. True or False

False

Quality is not the same as wholesomeness. True or False

True

A spec should include product information that can be verified upon delivery. True or False

True

Another word for a fixed price menu is

Bundled menu, taster menu, all-inclusive menu. (All of these)

Who tends to write specs in most independent operations?

Buyer and seller, working together

In order to decide quality standards, hospitality operators measure the types of quality standards that their

customers expect

Which of the following is the most critical piece of information to include on the product spec?

Intended use

A packer’s brand is

Personal packer’s grading system

Under the cost-plus purchasing arrangement, the purchase price is equal to the purveyor’s cost plus a negotiated markup. The cost used by the purveyor is sometimes referred to as the

Landed cost

The person who delivers shipments under the standing order procedure is usually referred to as a

Route salesperson

The acronym “DSR” stands for

Distributor sales rep

One of the categories that products should be sorted into before determining ordering procedures is

perishable items

For perishable products, the best approach to ordering is a ___ system.

used based

For products that are not perishable or center-plate, the best approach to ordering is a ___ system?

par stock

For items like sugar packets, paper products, and well-brand liquors, a good rule of thumb par stock is

six months

If a chef typically buys products direct from the manufacturer, which method would he or she most likely use?

Internet

A buyer who wants to purchase large quantities of products over a reasonably long period of time will most likely

fixed bid

A daily bid is most often used for purchasing

fresh produce

Products should be sorted into categories after determining ordering procedures for the operation. True or False

False

From the three categories that products are sorted into for purchasing, center of the plate items should be ordered infrequently. True or False

False

After checking the number of product units in stock and drawing up the purchase order, chefs must then check the product units on hand to ensure to see if their quality has deteriorated. True or False

False

The first step in determining the optimal supplier is to

Compile a list of suppliers

Which of the following is an example of a socially responsible supplier?

Deals with minority-owned subcontractors

The most critical attribute a vendor should have is

dependability

Another term for a one-stop shopping is

Sole source procurement, prime vendor procurement, single source procurement. (All of the above)

The person who delivers shipments under the standing order procedure is usually referred to as a

route salesperson

References can reveal how fair, honest, timely, and responsive vendors are. True or False

True

Will-call buying refers to an arrangement where buyers, giving little notice, can order large amounts of product from vendors. True or False

False

AP price and EP cost are kitchen terms which refer to the same thing. True or False

False

The EP cost of a food item is usually much higher than its AP price. True or False

True

A contract that covers the price each restaurant in a large multi-unit restaurant corporation will pay, with the purveyor ensuring that all company restaurants will be able to purchase the product at their locations, is referred to as a

national contract

Operators must strive to find some kind of tradeoff between investing in inventory and

running out of product

Peter is the kitchen supervisor of a large hospital foodservice facility. On average, the hospital uses ½ case of lettuce per day. 2 ½ cases are left on the day he’ll place the order. He knows it takes 3 days to receive the shipment after it has been ordered, and par stock is 8 cases. How many cases should Peter order?

7 cases

The serving size of mashed potatoes is 4 ounces (EP). The edible yield is 70%. How many pounds of raw (AP) potatoes should you purchase in order to serve 600 people?

215 pounds

When seeking a lower AP price, a buyer’s emphasis should be on

increasing overall value

The servable portion cost of a 50-ml serving of scotch, with a servable yield of 95% and an AP price of $9.10 per liter, is

$0.48

Another term for storage cost is

carrying costs

Calculate the number of AP pounds needed to serve 200 guests.

Item: Chicken

Serving Size: 6 oz (EP)

Edible Yield: 65%

115 pounds

Calculate the number of AP pounds needed to serve 500 guests.

Item: T-bone steak

Serving Size: 16 oz (EP)

Edible Yield: 75%

667 pounds

One of the disadvantages of over-ordering is that it can decrease how much cash the operation has on hand. True or False

True

Stockout costs are those costs, such as irritating guests, associated with being unable to serve a product because you ran out of it during the shift. True or False

True

The perceived quality of a product plus the perceived supplier services divided by the perceived edible portion cost equals the product’s

perceived value

A discount granted by a vendor if you agree to purchase a large amount of one specific type of product is referred to as a

quantity discount

Calculate the approximate EP cost per serving

Item: Tomato catsup

Edible Yield: 95%

Serving Size: 1 ounce (EP)

AP price per pound: $0.35

$0.02

One way to reduce the costs of goods sold and/or other costs of doing business is

Reduce product quality, reduce portion size, minimize the use of convenience products. (All of the above)

Calculate the approximate servable portion cost for one serving.

Item: Bourbon

Servable Yield: 90%

Serving Size: 65 ml

AP price: $14.95 per 1 ¾ liter (1,750 ml) bottle

$0.62

A chef is faced with the following situation:

Portion cut but steaks can be purchased for $5.28 per pound (AP); its edible yield is 100%. On the other hand, whole sirloin buts can be purchased for $4.16 per pound (AP); however, the edible yield is only 72%. What is your advice to the chef?

The portion cut steaks cost less to serve

The lowest AP price always results in the lowest EP cost. True or False

False

If you are costing out a recipe for a Seared Duck Breast entree, and you have five potential vendors for duck breast, you should cost out one version of the recipe based on the average AP price from all five vendors. True or False

False

F & B buyers should focus on quality that is appropriate for the menu, operation, and customer - not the highest quality available. True or False

True

The formula used to calculate a product’s EP cost per unit is:

AP price per unit divided by the unit’s edible yield percentage

True or False

True

If a roast turkey has an AP price of $1.10 per pound, and an edible yield percentage of 55%, the EP cost per pound is approx.?

$2.00

The practice of shopping entirely on the basis of AP price can be successful if

buyers know exactly what they want in terms of quality and supplier services

Procurement involves a _____ scope of activities than does “purchasing.”

more comprehensive

Which of the following groups are not typically involved in the development of purchasing specifications?

Customers

Concerns related to utilizing a single source supplier include the difficulties that could result from a service interruption (ex. in the event of severe weather, labor strike) as well as those from?

the supplier becoming too dependent on the hospitality organization

When manufacturers undertake research and development efforts to extend product lines for a large-volume hospitality organization, they are demonstrating their what?

asset commitment

A purchasing handbook is a communication tool used by larger organizations to inform suppliers about the organization’s

purchasing policies and procedures

Regular evaluation of supplier performance is important and should be undertaken __________.

AS decisions about primary suppliers for future procurement cycles are made

The basic principles required for effective purchasing _____.

are the same regardless of an operation’s size

Suppliers _______ likely to provide value-added services for their “problem” accounts.

are less

When suppliers substitute different (smaller) packaging sizes for those which are ordered _____.

the buyer’s labor-related costs typically increase

Which of the following is not a price-related procurement objective?

Obtaining lowest price

_____ is the major determinate in a seller’s price for items such as expensive bottled waters.

Customer willingness to pay

The scarcity of a product _____.

frequently reflects widespread lack of consumer interest in it

From the nontraditional pricing point of view that “Price and Cost are Unrelated",” price is justified by _____.

consumer demand for the product

If a buyer sought to purchase only three # 10 cans from a case containing six cans, he/she would be buying a _____.

split case

While there are exceptions, as an organization increases in size, its efforts to control the receiving procedure tend to _____.

increase

Which of the following would not likely be a critical job attribute (BOQ) for receiving personnel?

Ability to lift 100 pounds

Which of the following is not one of the three basic concerns of receiving?

ensuring proper invoice payment

Adjustments made to the quantity, quality, or costs information contained on a delivery invoice are documented via the preparation of a _____.

credit memo

Seafood that is considered “slack out” means that item what?

has been frozen, then thawed, and is now being sold as fresh

Multi unit food service operations using a central purchasing procedure may practice “blind receiving",” a buying system in which a purchase order indicating the products to be delivered, but not the _____, is sent to receiving personnel prior to product delivery.

quanities