Topic B: Procurement, Receiving, and Inventory Management

Question 1

____________ involves receiving, purchasing, inventory control, and storage

Answer 1

Procurement

Question 2

_____________ uses the same process as _____________ but scores the bidders based on established criteria

Answer 2

informal procurement processes; formal procurement processes

Question 3

_____________ is a type of formal procurement that uses an invitation to bis

Answer 3

competitive sealed bidding

Question 4

_____________ is a type of formal procurement process that uses a request for proposal

Answer 4

competitive negotiation

Question 5

The steps for informal procurement processes are:

2. Identity sources eligible, able, and willing to provide products
3. Contact sources
4. Evaluate bidders response
5. Determine the most responsive and responsible bidder at the lowest price

Answer 5

Develop specification in writing

Question 6

The steps for informal procurement processes are:

1. Develop specification in writing
3. Contact sources
4. Evaluate bidders response
5. Determine the most responsive and responsible bidder at the lowest price

Answer 6

Identify sources eligible, able, and willing to provide products

Question 7

The steps for informal procurement processes are:

1. Develop specification in writing
2. Identity sources eligible, able, and willing to provide products
5. Determine the most responsive and responsible bidder at the lowest price

Answer 7

3. Contact sources

4. evaluate bidders response

Question 8

A ___________ is an independent sales representative who contracts with certain manufacturers, processors, and prime source producers to arrange transactions between the two parties

Answer 8

Broke

Does not keep inventory

Question 9

A __________________ sells the manufacturer’s products to wholesale and retail customers

Answer 9

Manufacturers representative

Question 10

_________________ should be developed to ensure consistency of price, product quality, operational function, and fit for purpose

Answer 10

Specifications

are provided to potential bidders and a contract is agreed upon with those specifications

Question 11

_________________ is when food service operations create collective buying power to purchase more products at a lower price

Answer 11

Group purchasing

aka Group Purchasing Organizations (GPOs)

Question 12

A __________________ is a pricing contract that a supplier offerings to a business on products they frequently buy

Answer 12

prime vendor agreement

Used when a single vendor provides a customer with a majority of purchases

Question 13

A _________________ is generally used by the food service manager to request items from the purchasing manager

Answer 13

requisition form

Question 14

__________________ is a receiving method in which you give the receiving clerk and invoice or a purchase order that lists the items but not the quantity, weight, or price

Answer 14

Blind check receiving method

Question 15

__________________ means that the liability and title possessions of the items ordered shift to the customer when the shipment leaves the point of origin

Answer 15

Free on Board

Question 16

__________________ is a type of inventory system that takes into account the relative importance of inventory items based on their activity level

Answer 16

ABC inventory classification system

Looks at what percent of inventory an item contributes along with how much it contributes to the annual total of purchases

Question 17

______________ is a type of item in the ABC inventory classification system that makes up 10-20% of the total number of items kept in inventory but makes up __% to __% of total value purchases

Answer 17

A items

60%-80%

Question 18

______________ is a type of item in the ABC inventory classification system that makes up 50% to 60% of total inventory but makes up __% to __% of total purchases

Answer 18

C items

5% to 10%

Question 19

_____________ is a type of inventory in which a running balance of inventory is kept on hand

Answer 19

Perpetual inventory

Records for each product are maintained with the date that the items were receiving, the date the items were removed, the reorder point, purchase unit size, and par stock all in one place

Time consuming

Question 20

_____________ is a type of inventory which is completed one a month with physical counts recorded on a spreadsheet including the product name, unit size, count, and total value

Answer 20

Physical inventory

Question 21

_____________ is how many times a month inventory is transformed into revenue

Answer 21

Inventory turn over

also tells you how many weeks supply you typically have at a time

Question 22

A ____ turn over rate would be one greater than _________ and it means that there’s typically a large portion of money in inventory which increases storage space requirements, energy requirements, capital cots, and spoilage

Answer 22

low; 2 weeks

Question 23

A ____ turnover rate of less than ________ might indicate pilfering or that standardized recipes are not being used

Answer 23

High; 1 week

Question 24

Inventory turn over formula

Answer 24

inventory turn over= food cost / average food inventory

Question 25

____________ is the minimum amount of supply require in store

Answer 25

Par stock (aka safety stock)

Question 26

The safety stock of an item can be calculated using the _____________ which is the optimum quantity of an item to be purchased each time to minimize the cost of ordering and carrying an item in inventory

Answer 26

economic order quantity

Question 27

_____________ is the average cost of carrying the average quantity in inventory

Answer 27

holding cost

Question 28

the total cost of an item is the sum of its ___________, ___________, and ___________

Answer 28

ordering cost holding cost purchase cost

Question 29

In ________________ you always order X number of days before reaching your safety stock number rather than waiting until you reach your safety stock number

Answer 29

Fixed order quantity inventory systems

Question 30

In ________________, inventory is brought up to par level each time an order is placed regardless of how much is on hand

Answer 30

Par stock ordering This system allows stock to dip below par level

Question 31

In ________________ the stock is depleted to safety level before an order is placed

Answer 31

Minimum maximum stock method The number of units ordered will be the same each time

Question 32

In ________________ items are purchased as needed for immediate production and consumption without storing or recording in inventory

Answer 32

Just in time purchasing

Question 33

In general, cold foods should be received at ____ or colder

Answer 33

41F

Question 34

In general, frozen foods should be received at ___ or lower

Answer 34

0F

Question 35

In general, hot foods should be received at ___ or higher

Answer 35

135F

Question 36

Live shellfish, shucked shellfish, milk and milk products, egg and egg products should be received at ____ or lower

Answer 36

45F

Question 37

RTE TCS foods should be marked with use by date if they are going to be held for _____

Answer 37

at least 24 hours

Question 38

TCS foods should be vertically stored in order of minimum internal cooking temperature. Top to bottom: 1. 2. seafood 3. whole beef and pork 4. ground meat and fish 5. poultry (whole and ground

Answer 38

1. RTE Food

Question 39

TCS foods should be vertically stored in order of minimum internal cooking temperature. Top to bottom: 1. RTE food 2. 3. whole beef and pork 4. ground meat and fish 5. poultry (whole and ground

Answer 39

seafood

Question 40

TCS foods should be vertically stored in order of minimum internal cooking temperature. Top to bottom: 1. RTE food 2. seafood 3. 4. ground meat and fish 5. poultry (whole and ground

Answer 40

3. whole beef and pork

Question 41

TCS foods should be vertically stored in order of minimum internal cooking temperature. Top to bottom: 1. RTE food 2. seafood 3. whole beef and pork 4. 5. poultry (whole and ground)

Answer 41

ground meat and fish

Question 42

Shelves should be at least _____ of the floor with space in between the all and the back of the shelf

Answer 42

6 inches

Question 43

____________ bioterrorism agents are easily transmissible from person to person or easily disseminated, have high mortality rates, have the potential for public panic and social disruption, and require special actions for public health preparedness

Answer 43

Category A Highest priority agents. Include anthrax, botulism, plague, smallpox, tularemia, and viral hemorrhagic fevers

Question 44

_____________ bioterrorism agents are moderately easy to disseminate, have moderate mortality rates, require enhanced disease surveillance and specific enhancements in the CDC's diagnostic capacity

Answer 44

Category B Second highest priority agents. Include Salmonella, E. coli, shigella, cholera, cryptosporidium parvum, staphylococcal enterotoxin B, typhus fever, and viruses that cause encephalitis

Question 45

Refrigerators will keep food safe for about _____ with the door shut during a power outage

Answer 45

4 hours

Question 46

Freezers will hold temperature for _____ when full or _____ when half full with the door shut during power outages

Answer 46

48; 24

Question 47

When choosing what to discard and what to keep after power outages, most products should be discarded if they have been held above _____ for over ____

Answer 47

40F, 2 hours exceptions- hard cheeses, processed cheese, butter, margarine, fruit juices, canned fruits, uncut fresh fruits, dried fruits, condiments, vinegar based dressing, bakery items, fresh mushrooms, herbs and spices, raw veggies

Question 48

The 4 different types of food service systems are:

Answer 48

Conventional Ready prepared Commissary Assembly/Serve

Question 49

In a ________________ food service system, food is purchased, transformed into the final product for service, and held at serving temperature until actually served all in the same facility

Answer 49

Conventional Advantages- high food quality, flexibility in the foods that can be produced Disadvantages- less time flexibility, more labor, workload is unevenly distributed, workload is limited to the length of time hot food can be held

Question 50

In a ________________ food service production system, the food is prepared in a large central kitchen and then delivered in bulk for final production and service

Answer 50

commissary Ideal for serving large volumes of food Advantages- cost savings, limited workload variability, uniform products across service locations, no cooking during meal time Disadvantages- food safety concerns, quality concerns during holding and transporting, requires reliable transportation and large production kitchen

Question 51

In ________________ food production system food is prepared, chilled/frozen, and then heated back up for service all in the same location

Answer 51

Ready-prepared Advantages- ability to prepare food in bulk or individual portions, more even workload, supports increased variety Disadvantages- large equipment requirements, not all foods freeze or chill well, quality concerns

Question 52

In a ________________ food production system, prepared food that requires minimal assembly or cooking prior to service is purchased. Food is held chilled or frozen before being assembled or heated for service.

Answer 52

Assembly/Serve Advantages*- reduced labor and skill, food is purchased prepared, requires minimal equipment Disadvantages- limited menu, higher food cost, quality is not always the same as fresh *advantages are only really seen in small food service operations- the higher cost from purchasing prepared food items versus equipment investment isn't offset with large foodservice operations

Question 53

In a ________________ prepared food is portioned and assembled for meals at a central location and the completed orders are then transported to customers.

Answer 53

Centralized delivery system Seen in fast food, hospitals, long term care facilities. Food is transported plated or basically ready to plate

Question 54

In a ________________ there is a main kitchen in which bulk quantities of food are prepared and then transported to the satellite locations. Staff at the satellite locations reheat, portion, and assemble the meals.

Answer 54

decentralized delivery system Used when there's a large distance between the kitchen and the consumer and/or when menu items travel better in bulk than plated. Used in large hospitals, medical centers, school districts