Purchasing Final Exam Questions and Answers 2023 with
complete solution
How has the purchasing function evolved?
Partnership with vendor is seen as competitive advantage
In which product and service category are ovens, refrigerators, and booths?
Furniture, Fixtures, and Equipment
What is an example of an external factor that affects purchasing?
Environmental concerns
What is an example of purchases being based on concept of intended use?
Using chopped olives, not super colossal, for pizza preparation
What is referred to as organizations and individuals involved in the process of
making a product or service available?
Distribution channel
What methods are used to maintain adequate quantities of product?
Analyze sales history and current conditions to forecast usage
What refers to the search for best practices and an understanding of how they are
achieved?
Benchmarking
Which steps in the purchasing process affect all orders?
1 & 2: Identify product need and Determine quality requirements
Which term refers to the purchasing system wherein all or most purchases are
made by
Decentralized
What type of organization may have specialized purchasing staff in district,
regional, or other offices, such as Beverage, Equipment, and Food Buyer, as well
as Centralized Distribution and Commissary?
Multiunit chains
How do vendors benefit when product specifications are used?
Bidding is based on the same quality product
What is a strong argument in favor of on-site production of products as opposed
to the use of convenience food?
Signature dishes will be unique to the operation
What is involved in the evaluation of the make-or-buy decision?
Time and possibly repetition of the process
What is the purpose of product specifications?
Communication tool to ensure that staff and vendors understand quality needs
What purpose would cause a purchaser to involve hourly production employees
in the development of specifications?
They use and know about intended use and can evaluate alternatives and note
concerns
What refers to a study that suggests whether a product should be prepared "from
scratch" on-site or purchased as a partially or fully processed item?
Make-or-buy analysis
, What refers to the concept of improving processes and procedures rather than
identifying defects?
Total quality management
What refers to the process that involves blast-freezing food in individual pieces
before packaging, resulting in better-maintained taste, texture, and nutrient
values?
Individually quick frozen (IQF)
Which specification information concern is the purchaser addressing when the
menu states that an item comes from a particular place and the operation wants
to be legally accurate?
Place of origin
Which specification information quality features are addressed when the focus is
on type of item, weight, preservation needs, intended use, and the amount or
portion size of the item?
Packaging
Does the purchaser use the same procedure to determine purchase quantities for
all products in the operation?
No; perishable products are purchased more often than nonperishable
Incorporating yield test results into purchase specifications and ensuring that
operating controls are used consistently are strategies to achieve what result?
Similar item yield each time so cost is accurate
What are sources of information about future sales trends that could affect
purchasing?
Local media and trade or business associations
What is an example of a current trend that may require an adjustment to a
forecast based on historical data?
Weather
What refers to a cash fund used to make infrequent and low-cost product
purchases?
Petty cash system
What refers to a purchasing method that is computerized and involves the use of
mathematical calculations to analyze costs related to various factors?
Economic order quantity
What refers to a system in which the vendor retains ownership of products until
they are issued to production?
Vendor managed
What refers to the minimum number of purchase units that must always remain in
inventory in case of late deliveries or unexpected increases in product usage
rates?
Safety level
What refers to the percentage of customers likely to order specific menu items?
Menu item popularity index
What sorts of problems arise when inadequate quantities of products are
purchased?
Stockouts lead to inability to meet production requirements
complete solution
How has the purchasing function evolved?
Partnership with vendor is seen as competitive advantage
In which product and service category are ovens, refrigerators, and booths?
Furniture, Fixtures, and Equipment
What is an example of an external factor that affects purchasing?
Environmental concerns
What is an example of purchases being based on concept of intended use?
Using chopped olives, not super colossal, for pizza preparation
What is referred to as organizations and individuals involved in the process of
making a product or service available?
Distribution channel
What methods are used to maintain adequate quantities of product?
Analyze sales history and current conditions to forecast usage
What refers to the search for best practices and an understanding of how they are
achieved?
Benchmarking
Which steps in the purchasing process affect all orders?
1 & 2: Identify product need and Determine quality requirements
Which term refers to the purchasing system wherein all or most purchases are
made by
Decentralized
What type of organization may have specialized purchasing staff in district,
regional, or other offices, such as Beverage, Equipment, and Food Buyer, as well
as Centralized Distribution and Commissary?
Multiunit chains
How do vendors benefit when product specifications are used?
Bidding is based on the same quality product
What is a strong argument in favor of on-site production of products as opposed
to the use of convenience food?
Signature dishes will be unique to the operation
What is involved in the evaluation of the make-or-buy decision?
Time and possibly repetition of the process
What is the purpose of product specifications?
Communication tool to ensure that staff and vendors understand quality needs
What purpose would cause a purchaser to involve hourly production employees
in the development of specifications?
They use and know about intended use and can evaluate alternatives and note
concerns
What refers to a study that suggests whether a product should be prepared "from
scratch" on-site or purchased as a partially or fully processed item?
Make-or-buy analysis
, What refers to the concept of improving processes and procedures rather than
identifying defects?
Total quality management
What refers to the process that involves blast-freezing food in individual pieces
before packaging, resulting in better-maintained taste, texture, and nutrient
values?
Individually quick frozen (IQF)
Which specification information concern is the purchaser addressing when the
menu states that an item comes from a particular place and the operation wants
to be legally accurate?
Place of origin
Which specification information quality features are addressed when the focus is
on type of item, weight, preservation needs, intended use, and the amount or
portion size of the item?
Packaging
Does the purchaser use the same procedure to determine purchase quantities for
all products in the operation?
No; perishable products are purchased more often than nonperishable
Incorporating yield test results into purchase specifications and ensuring that
operating controls are used consistently are strategies to achieve what result?
Similar item yield each time so cost is accurate
What are sources of information about future sales trends that could affect
purchasing?
Local media and trade or business associations
What is an example of a current trend that may require an adjustment to a
forecast based on historical data?
Weather
What refers to a cash fund used to make infrequent and low-cost product
purchases?
Petty cash system
What refers to a purchasing method that is computerized and involves the use of
mathematical calculations to analyze costs related to various factors?
Economic order quantity
What refers to a system in which the vendor retains ownership of products until
they are issued to production?
Vendor managed
What refers to the minimum number of purchase units that must always remain in
inventory in case of late deliveries or unexpected increases in product usage
rates?
Safety level
What refers to the percentage of customers likely to order specific menu items?
Menu item popularity index
What sorts of problems arise when inadequate quantities of products are
purchased?
Stockouts lead to inability to meet production requirements
