purchasing. section objectives upon completing this section, you should be able to: explain the...
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Purchasing
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Section Objectives
Upon completing this section, you should be able to:• Explain the process of purchasing
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Purchasing
One can prepare a poor meal with good ingredients, but it is impossible to prepare a good meal with poor ingredients
Definition: Purchasing is the careful process of selecting from many choices, making sound decisions, and developing solid relationships with vendors
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Importance of Purchasing
• Food items are perishable• Profitability depends on purchasing• Guest satisfaction is related to purchasing• Money can be tied up with improper purchasing• Purchasing is an important component of
management• Purchasing starts the entire process of operations
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Purchasing Goals
• Purchase the right product at the right time and at the right price
• Purchase only products needed and in the quantities required
• Insist on quality at optimum price• Develop and use proper specifications• Deal with reputable purveyors• Be ethical in all dealings
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Purchasing Decisions
• Inventory on hand• Storage capacity• Seasonal fluctuations• Type of market• Proximity of market• Delivery method
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Points to Consider
• Take advantage of seasonal/price fluctuations• Consider available sources• Compare and select the best price, considering
all aspects• Consider hidden costs, such as handling • Consider available storage space
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Points to Consider—continued
• Waste and spoilage• Duration of storage• Processing required• Theft and pilferage• Discounts• Minimum order• Transportation and delivery• Quality assurance
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Purchasing Specs
Specifications, or “specs,” are a description of a particular commodity in terms of its size, quality, and/or condition.
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Components of Specifications
• Meat grades• IMPS #• Description• Species• Size and thickness• Style • Conditions upon
delivery
• Grade• Quality• Variety• Size • Packaging• Density• Score
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Purchasing Categories
• AP = as purchased• EP = edible portion
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Yield Percentage
Percentage of yield = × 100Weight after cooking
Weight before cooking
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Yield Percentage—continued
Percentage
of yield × 100 = 70%
Weight after cooking (70 lb)
Weight before cooking (100 lb)=
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EP Cost
EP cost AP cost
Yield percentage=
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EP Cost—continued
• Yield percentage = .75
• AP cost = $.65
• EP cost = $.65
.75
EP cost = $.87
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Tracking Inventory Periodic Inventory Method
• Entire stock is physically reviewed on a regular basis
• From this review, the manager determines reorder point for each inventory item
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Tracking Inventory–continuedPerpetual Inventory Method
• Uses inventory cards to keep track of what food items are in storage
Items are:• Checked in on inventory cards when delivered to
the restaurant• Checked off as they are issued for use in the
kitchen area
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Maintaining InventoryPar Stock
• Par stock is the ideal amount of an inventory item that should be on hand
at all times
• It reflects a quantity that neither runs out nor spoils on the shelf
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Maintaining InventoryReorder Point (ROP)
• The point or quantity limit at which stock is reordered is the reorder point
• For example, if the reorder point for 50-pound sacks of flour is two and there are only two sacks left in the storeroom, then the buyer knows to order more flour
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Steps in Purchasing
• Request bids and/or quotations
• Select vendor
• Send purchase order via electronic
or other means
• Collect invoices
• Produce receiving reports
• Maintain inventory records
• Maintain requisition records