CUL 129 CHAPTER 3 Latest 2023 Graded A+

CUL 129 CHAPTER 3 Latest 2023 Graded A+ Buyer's Club A retail organization in which, after payment of a member fee, person's can purchase food and other products in large volume package sizes Close Out A strategy used by vendors or manufacturers to quickly sell unwanted inventory by reducing prices Cost Per Servable Pound The cost of one pound of product that can be served to customers Just In Time Purchasing A system in which a purchaser has a long-term commitment with a vendor to make frequent product deliveries Menu Item Popularity Index The percentage of customers likely to order specific menu items Minimum-Maximum Inventory An inventory system that requires the buyer to determine the minimum and maximum quantity that inventory levels must fall between Order Point The number of purchase units that should be available in inventory when an order is placed Par Level Inventory A system in which a specified quantity of products should always be in inventory Petty Cash System A cash fund used to make infrequent and low cost product purchases Production Loss The amount by weight or percentage of a product's AP weight that is not servable Sales History The number of each specific menu item that is sold Split Case A case of less-than-full purchase unit size sold be a vendor, also called a broken case Standardized Recipe A recipe that provides detailed instructions, including the amount of every ingredient, to produce a food or beverage item Vendor-Managed Inventory A system in which the vendor determines the quantities needed for purchase and retains ownership of products until they are issued to production Yield Test A carefully controlled process for determining the amount (weight or percentage) of the AP (as purchased) quantity of a product remaining after production 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 What sorts of problems arise when products are purchased in larger quantities than necessary? Greater risk of employee theft or pilferage What sorts of problems arise when inadequate quantities of products are purchased Stock outs lead to inability to meet production requirements What is the practice of most buyers regarding use of the ideal order point They do not order then; rather items are placed in categories (produce, meat, etc.) that are ordered at the same time When might a purchaser opt to purchase larger-than-usual quantities Close-out sale What would be the advantage of purchasing quantities of parts and supplies that are being discontinued Expands useful life of equipment How are sales histories used to determine purchase quantities Number of each menu item sold plus estimated customer count equals quantity to order What is an example of a current trend that may require an adjustment to a forecast based on historical data Weather What are sources of information about future sales trends that could affect purchasing Local media and trade or business associations What refers to the percentage of customers likely to order specific menu items Menu item popularity index What refers to a system in which there is a specific quantity of products that should always be in inventory Par level What are typical reasons for production loss when preparing a meat product Trim loss from fat and bones and roasting shrinkage 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 Why would a purchaser avoid ordering a split case An add-on charge is likely to be incurred What sort of items is the Par level inventory system often used for Perishable, alcoholic beverages, and linen What refers to the number of purchase units typically used between placing and receiving the order Lead time 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 Under what circumstances would an exact requirements system be used Where no permanent inventory of special use item is desired What refers to a purchasing method involving several operations that combines orders for a similar quality of products and then submits one order to a vendor Cooperative buying 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 cash fund used to make infrequent and low-cost product purchases Petty cash system What refers to a system in which a purchaser has a long-term commitment with a vendor to make frequent product deliveries Just-in-time What refers to a system in which the vendor retains ownership of products until they are issued to production Vendor managed What conditions should be met when the minimum-maximum inventory system is used p. 75 What concepts must be understood as the minimum-maximum inventory system is discussed 1. Purchase unit 2. product usage rate 3. order period 4. lead time 5. safety level 6. order point When deciding on an amount to order what are the questions a manager should ask himself 1. Minimum number of cases allowable in inventory 2. Maximum number of cases allowable in inventory 3. Order point in terms of number of cases 4. Number of cases that should be purchased if an order will be placed before that product's order point is reached In Min/Max order system what factors should be considered when the safety level is established 1. The lead time required for reorders 2. Product usage rate What conditions can lengthen product delivery times 1. Vendors may not be dependable 2. operation may be in a remote location 3. Market conditions may affect availability Advantages to using Min/Max system p. 79 Disadvantages to using Min/Max system p. 79 Goal of a JIT system is to have the necessary quantity of required products arrive close to the time when they are needed for production