ProStart Level 2 Chapter 11: Purchasing – Foodservice Buying and Inventory
Control Review
Par stock levels - ✔✔The ideal amounts of inventory items that an operation should have at all
times.
Cash position - ✔✔The amount of funds available to a restaurant or foodservice operation at
any given time.
Channel of distribution - ✔✔The flow of food to an operation.
Three main layers in the channel of distribution - ✔✔Primary sources, intermediary sources,
and retailers.
Primary sources - ✔✔This layer in the channel of distribution includes the farmers and
ranchers who raise produce and livestock.
Intermediary source - ✔✔The company that buys food items from a farmer and then resells
those same food items to a retailer.
Franchise - ✔✔A legal business relationship in which an independent owner buys the right to
use a company's name, products, and logo.
Contract - ✔✔A legal, binding business arrangement for the supply of goods or services at a
fixed price.
Commodity - ✔✔An economic good that is a product of agriculture or mining.
Control Review
Par stock levels - ✔✔The ideal amounts of inventory items that an operation should have at all
times.
Cash position - ✔✔The amount of funds available to a restaurant or foodservice operation at
any given time.
Channel of distribution - ✔✔The flow of food to an operation.
Three main layers in the channel of distribution - ✔✔Primary sources, intermediary sources,
and retailers.
Primary sources - ✔✔This layer in the channel of distribution includes the farmers and
ranchers who raise produce and livestock.
Intermediary source - ✔✔The company that buys food items from a farmer and then resells
those same food items to a retailer.
Franchise - ✔✔A legal business relationship in which an independent owner buys the right to
use a company's name, products, and logo.
Contract - ✔✔A legal, binding business arrangement for the supply of goods or services at a
fixed price.
Commodity - ✔✔An economic good that is a product of agriculture or mining.
