Receiving, Storage, Issuing, Inventory

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  • Topic: Food, Purchase order, Catering
  • Pages : 16 (3376 words )
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  • Published : October 28, 2012
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PURCHASING

Primary Purpose
    To ensure a continuing supply of sufficient quantities of the necessary foods, each of the quality appropriate to its intended use and purchased at the most favorable price

Types of Food to be Purchased

1. Perishables
    Typically fresh foods that have a short useful life after they have been received     Example: fruits, vegetables, fresh seafoods, fresh meats

2. Non-Perishables
    Food items that have longer shelf-life
    Frequently referred to as groceries or staples
    Stored in packages or containers in which they are received for weeks or even months     Example: canned, bottled, packed goods, frozen meats and seafoods

ESTABLISHING STANDARDS AND STANDARD PROCEDURES

QUALITY STANDARDS

Menu – basis for determining food items that will be required for day-to-day operations

Standard Purchase Specifications
    A carefully written description of those specific and distinctive characteristics that best describe the desired quality of each item         Includes brand name, size, packaging, grading, place of origin, cut, degree of ripeness/freshness, variety     Printed and distributed to suppliers to let them know your exact requirements     Not fixed, if conditions change, Purchase Specs can be rewritten and recirculated

Example:
SALMON
        Whole, dressed, fresh
        Minimum 8lbs, maximum 12lbs
        Norwegian
Fish firm and elastic, meat pink & slightly translucent
        Gills free from slime & reddish-pink in color         Scales adhering tightly to the skin

SHRIMP
        Shell-on
        16-20 count
        Packed in 5lbs block
        Delivered at 100F or below

CANNED CHERRIES
        Dark, sweet, pitted
        US Grade A, packed in water
        Count per #303 can: 30-35 pcs
        Packed 24 to a case

QUANTITY STANDARDS

Perishables

Market Quotation List – basis for ordering perishables

Par Stock – quantity of any item required to meet anticipated needs in some specific upcoming period

Formula: Par Stock less Quantity on hand = Quantity to order

Non-perishables

Goal – avoid excessive quantities on hand

2 Basic Methods of Ordering

1.    Periodic Order method
2.    Perpetual Inventory Method

PERIODIC ORDER METHOD
    Set regular dates for ordering with fixed intervals between them, may be once a week, every 5 days, every 2 weeks or once a month

Formula:    
          Amount required for upcoming period
-    Amount presently on hand
+    Amount wanted on hand at the end of the period to last until the next delivery       (Desired ending inventory or DEI) + safety factor =    Amount to order

PERPETUAL INVENTORY METHOD

    Use of perpetual inventory cards
Formula:
    Par Stock
-    Re-order point + safety factor
=    Sub total
+    Normal usage until delivery
=    Re-order quantity

Re-order Point
    Equivalent to the desired ending inventory in the periodic order method     Know normal usage and time needed to obtain delivery

Re-order Quantity
    Amount that will be ordered each time the quantity reach the re-order point to bring the total inventory up to the par stock level

Safety factor
-    allowance set by management to cover for unforeseen events like delay in delivery of supplier, increase in item usage, or both -    normal usage until next delivery x safety factor %
    

PRICE STANDARDS

Different Buying Methods

1.    Open Bid
-    most commonly used method
-    establishment sends out its specs to a variety of companies that supply the items needed -    buyer can buy all, or part, of the order from whomever solicits the lowest bid -    process is open – buyer can tell one company the lowest bid offered and see if they will lower their bid

-    advantage: can obtain lowest price
-    disadvantage: time consuming

2.    Sealed Bid
-    Suppliers send back a bid that no one else is aware of -    Mostly used in purchasing...
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