chapter 8 purchasing and recieving permission granted to reproduce for educational use only.©...

Chapter8Purchasing and Recieving

Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc.

Objectives

• Describe the role of the purchaser.• List the five main tasks of purchasing.• Explain the purpose of a specification.• Outline the process of selecting a

supplier.• Relate how a purchase order is used.• Describe the three tasks of receiving.

continued


Objectives

• Determine why proper storage is important in restaurants.

• Describe the two main tasks of inventory.


Purchasing and Receiving

• Purchasing is the buying of goods and services for use in a business

• Receiving is the process of making sure the items delivered are the items ordered

• Storage is a safe, secure place in which items are placed until they are needed

• Inventory is the process of counting and keeping of all items in storage


Staff

• In small operations, the owner or manager handles the purchasing

• In larger operations, purchasing is assigned to individual department heads

• The purchaser must make sure the operation– has everything it needs– has it in the right amounts– has it at the right time


Purchasing

• The five main tasks of purchasing are– developing specifications– determining quality– determining quantity– selecting suppliers– ordering


Developing Specifications

• A specification (spec) is a detailed description of a product

• To develop specifications, the purchaser works with the person or department that needs the product

• Detailed, accurate specs ensure that the product is the exact item that is needed


Determining Quality

• The U.S. Grade Standards provide a common language for describing the quality of food

• The standards are voluntary• Grade A is the top grade• All grade levels are wholesome and safe to eat• The grade of product needed depends on the

intended use


Determining Quantity

• Many businesses use a par stock and reorder point system– In stock means on hand in the kitchen or

storeroom– Par stock is the maximum amount of a product

allowed to be in storage at one time– The reorder point is the minimum amount of a

product in storage; when the supply reaches this amount, the product must be reordered


Perishability

• Businesses want to keep just enough product on hand to meet customer demand

• If a product is ordered frequently, smaller quantities may be bought

• Some suppliers deliver only at certain times• Perishable products must be bought in

quantities that can be used before they spoil


Cost-Effective Buying

• Cost-effective buying is buying the most products at the best quality for the least amount of money– Suppliers may offer discounts for buying larger

amounts, but consider shelf life and storage– Buy food in season– Consider delivery costs


Selecting Suppliers

• Suppliers are often selected through a bidding process– The purchaser gives product specifications to

several suppliers– Each supplier submits a bid, which states what

the supplier will charge for the product and any other services the supplier will offer

– The purchaser evaluates the bids and selects the best one


Ordering

• An order is a list of products that a business wants to purchase

• A purchase order contains detailed information about the amount, delivery date, and price of the item being purchased

• A standing order is an order that does not change and should be filled at regular intervals

• In contract buying, the contract specifies products to be delivered at a guaranteed price


Receiving

• Deliveries are received on a receiving dock, unloaded from the truck, and placed in the receiving area

• During unloading of the shipment, products are checked to make sure they match what was ordered and are in good condition

• Documentation such as invoices, delivery slips, and credit memorandums are sent to accounting


Storage

• Products should be stored as soon as the receiving process is completed

• Three basic types of storage facilities:– refrigerators– freezers– storerooms


Storage Facilities

• All products should be– kept in a clean area– stored at the proper temperature– protected from contamination

• Repackaged foods must be properly packaged and labeled

• carefully repackaged for storage• Food items should be used in the order they were

received (FIFO)


Reducing Theft

• To reduce opportunities for theft,– move items from the receiving area to locked

storage as soon as possible– restrict access to storerooms


Inventory

• Items are made available to employees as they need them, which is called issuing or requisitioning– The employee who needs the items prepares a

requisition form– A manager approves the form– The form is given to the storeroom clerk– The clerk issues the items to the employee

continued


Inventory

• Inventory control is keeping track of the items used– Physical inventory is going into storage areas

and counting every item– Perpetual inventory is using computer systems

to keep records of the items received and issued


Relationships with Suppliers

• Purchasers need to create good relationships with suppliers they can trust and depend on– Establish ground rules for the business

relationship with each supplier– Follow business ethical standards


• The _____ must make sure the operation has everything it needs in the right amounts at the right time.– purchaser

• Why do specifications need to be detailed and accurate?– to ensure that the product is the exact item that

is needed

Chapter 8 Review

continued


• _____-_____ _____ means buying the most products at the best quality for the least amount of money.– Cost-effective buying

• Name three methods of ordering products from suppliers.– purchase order, standing order, contract buying

Chapter 8 Review

continued


• Products should be stored as soon as the _____ process is completed.– receiving

• What is the difference between a physical inventory and a perpetual inventory?– A physical inventory requires going into storage

areas and counting every item. With perpetual inventory, records are kept on a computer system.

Chapter 8 Review

chapter 8 purchasing and recieving permission granted to reproduce for educational use only.©...

Documents

educational use

main tasks of purchasing

eatthe grade of product

main tasks of inventory

grade standards

items orderedstorage

buying of goods

storeroompar stock