NRA Purchasing Study Questions

NRA Purchasing Study Questions Who would a food buyer in a large chain operation would typically report to? - ANS Purchasing vice president or director What is the purpose of placing cost limits in purchasing specifications? - ANS to maintain a competitive position What is the primary objective to the purchasing function? - ANS To maintain adequate supply What items are included in the product category "Food and beverage"? - ANS All food and beverages but not FFE and services Which type of purchasing process is in use at a small-volume operation that does NOT employee a full-time purchasing staff? - ANS Decentralized Costing a recipe and calculating order quantities is an example of which type of purchaser's skills? - ANS Technical Training staff, handling vendors, and cooperating with other managers are all which type of skill? - ANS Interpersonal The process of obtaining products and services of a desired quality at a desired price is known as? - ANS Purchasing Purchasing can best be described as the process of obtaining products and services of a ___? - ANS Desired quality at a desired price Which activity is typically a job responsibility of a purchaser? - ANS Negotiating contracts with suppliers Why would a vendor offer a much lower prices in a competitive bidding situation? - ANS The vendor wants to break into the market What is an agreement between two businesses in which the contract's consideration is NOT in the form of money is called? - ANS A trade out Alternative products and services are also known as ___? - ANS Acceptable substitutes An agreement made between two or more parties is called a __? - ANS Contract A signature dish is a menu item that___? - ANS Customers associate with a specific operation After determining the needed product, what is the next step in developing product specification? - ANS Learn about available products The par stock order level for peas s is 11 cases. Orders are placed every Friday morning and received every Monday morning. On Thursday, there are 3 cases in stock, 1 of which will be used before the next order is received. A banquet is scheduled for next Wednesday, which will use 4 cases. How many cases of peas should be ordered on Friday morning? - ANS 13 Quality standards are based on ____? - ANS An operation's requirements for products and services Specifying the exact name of the item or service an operation wants to buy will ____? - ANS Help ensure that the correct item is received A purchase requisition is defined as? - ANS The details of a departments product sent to the purchasher before the order is placed Which purchaser communication behaviors might cause a vendor to consider the purchaser to be a "problem account"? - ANS Frequent emergencies, order changes, and last minute issues Legally valid agreements consist of? - ANS An offer, consideration, and acceptance Which element of a contract refers to information NOT being shared with anyone? - ANS Confidentiality What is the preservation method that helps maintain the taste, texture, and nutrient values of fish or fruit called? - ANS Individually quick frozen The required characteristics of a particular product or service are known as? - ANS Product Specifications Which kind of analysis should a purchaser perform in order to discover the proper balance of quality and cost-of-production of selected menu items? - ANS Make-or-buy analysis When do stock-outs occur? - ANS When an item has been depleted from inventory The market form indicates how an item is ___? - ANS Processed prior to being packaged The process of assessing whether to prepare food from scratch or purchase as a partially or fully processed item is known as? - ANS Make-or-buy analysis Hastening the delivery of products that have been ordered but NOT yet received is known as? - ANS Expediting Purchasers can assure that vendors will provide specified quality by? - ANS Checking incoming products in the receiving process and returning those that do match standards A purchaser should conduct an evaluation of an operation's quality requirements by? - ANS Talking and working directly with managers who use the purchased items Fresh whole tomatoes, tomato pieces of uniform size, tomato sauce, and tomato puree are examples of a food product in what form? - ANS Market Money or other gifts received by an individual in return for purchasing from a specific vendor are called? - ANS Kickbacks When a purchasing manager is given a tropical vacation from a vendor in return for a purchase it's known as a? - ANS Kickback When selecting a vendor, a purchasing manager should ensure that the vendor is? - ANS Compliant with applicable local, state, and federal laws Which question should a purchasing manager ask before deciding to accept a holiday gift from a current vendor? - ANS Does acceptance of the gift follow the operation's policies or cod of ethics? Which agencies will inspect a vendor? - ANS Food and Drug Administration(FDA), United States Department of Agriculture (USDA), Occupational Safety and Health Administration (OSHA) What is the benefit of using a broadline vendor for a product category? - ANS It will decrease processing time with fewer deliveries and invoices What is the most important factor when evaluating a vendor? - ANS Consistent quality What action should be avoided in the purchasing process? - ANS Backdoor selling The purpose of having a code of purchasing ethics is to... - ANS Provide guidelines for behavior when making purchasing decisions An agreement to buy from a vendor in return for some kind of business from that vendor is known as? - ANS Reciprocity A qualified buyer is best defined as a? - ANS Individual with purchasing authority The rule of thumb regarding accepting kickbacks from vendors is that it is often perceived as? - ANS the most serious ethical violation a purchaser can commit Some operations allow their employees to buy products from the operation's vendors for their personal use at discounted prices. This is known as? - ANS Steward Sales A result of a properly implemented HACCP plan is that___? - ANS Hazards are monitored and reduced What is the most reliable way to find an appropriate supplier? - ANS Previous experience with vendors What is a major benefit of using alternative purchasing sources? - ANS Reduced per-unite costs are often available with increased purchase volume Some operations combine concerns and policies about purchasing ethics into a ___? - ANS Code of ethics pamphlet Which best describes the advantage of cooperative buying? - ANS Lower prices from suppliers What are two widespread approaches used when calculating optimal inventory amounts? - ANS Par stock or par level and min/max To calculate expected usage, what is used as the starting point? - ANS Past sales trends What is the main limitation with the par stock or par level approach? - ANS It does consider the cost of food or ordering The calculation of the customer count forecast uses when in its calculations? - ANS Expected decreases or increases in historical counts Which purchasing system allows for products to be ordered and received close to when they are needed for production? - ANS Just-in-time (JIT) What is the potential risk in purchasing in excessive quantities? - ANS More product being at risk for theft, spoilage, or damage Perishable products are products that ___? - ANS will decay within a limited period of time the par stock approach or par level inventory system requires the purchaser to determine___? - ANS The level of inventory that must continually be in stock from one delivery date to the next What is the formula for a customer count forecast? - ANS customer count last period + (customer count last period x % increase expected) If an operation has a budgeted 30% food cost, which multiplier should be used to calculate selling price? - ANS 100/3=3.333 or 3.3 rounded Operations have a better negotiating position when? - ANS They purchase large quantities of a product What is a fallback position? - ANS An alternative course of action that may be taken if the original plan fails used in negotiations What are some examples of differential pricing? - ANS ladies night, senior discounts, and children's menus In a free market situations who are the parties who determine the prices for products? - ANS The vendor and the buyer Define value perception - ANS the customer's opinion of a product's value In the restaurant and foodservice industry, the government exercises price control over which product? - ANS Alcoholic beverages The purchaser must make sure there is storage room for the large amount of product before agreeing to receive service from a vendor? - ANS Quantity discount Why do manufacturers use rebates? - ANS To introduce new products and enhance awareness of existing products When receiving a product delivery, the vendor's invoice should be compared to the __? - ANS Purchase Order A portable platform used to store and move product is a ? - ANS pallet What are the most important receiving procedures in an operation? - ANS Confirming that the products meet the quality standards Which equipment is necessary to have on hand for an operation's receiving process? - ANS Thermometers and scales Maintaining quality standards is most difficult with which items? - ANS Fresh vegetables What is the main function of receiving? - ANS Checking and either accepting or refusing deliveries When is product ownership transferred from the vendor to the operation? - ANS When the delivery invoice is signed What is petty cash funds used for? - ANS minor, relatively low-cost purchases Refrigerated foods must be received at or below which temperature? - ANS 41 degrees Fahrenheit What is the best height to store most products? - ANS shoulder height or lower Cooperative buying is best for which situations? - ANS Small operations