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49 Cards in this Set
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- Back
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what is the formula for EP cost per pound?
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AP Price divided by EP % = EP cost per pound
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what is the formula for waste %?
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waste% = product loss divided by AP weight
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what is the formula for AP required, or the amount you need to purchase?
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EP required divided by EP% = AP required
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what is the formula for EP required, or the amount that is edible?
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EP required = AP required x EP%
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what is the formula for yield?
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EP% = 1.00 - waste%
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what does EP weight divided by AP weight give you?
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EP%
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a purchase order is what kind of control?
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primary, used throughout purchasing, receiving and the accounts payable process.
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what is a purchase order?
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a form listing products to be purchased, price, delivery date and other data
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what does the purchase order include?
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unique number to identify it
name of ordering restaurant and contacts date of order signature of person placing order supplier's name and contacts date of delivery, terms of payment each item purchased, quantity, unit, unit cost, extended cost total cost of order |
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buyer sends copies of the purchase order where?
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to supplier
to receiving clerk clerk notes what has been sent and sends it on to accounting |
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what is accounting's role with the purchase order?
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compare the purchase order to supplier's invoice to determine correct amount to pay supplier
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what is a mandatory control in every restaurant?
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purchase order
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what are "competitive quotes"?
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common purchasing method used by independents and smaller operations.
Buyer completes a market quotation sheet with items and specs and sends it to 2 or more suppliers for price quotes |
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what are quotes?
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prices cited by purveyors for a specific product
specs must be established, or else anything could be shipped |
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what is a standing order?
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usually for bakery, coffee and dairy products where the restaurant establishes par stock for each item and supplier brings delivery to keep par stock at correct levels from one delivery to the next
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what is par stock?
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the level that must be kept in stock from one delivery to the next
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how do you determine par stock levels?
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1. determine time between deliveries
2. determine estimated amount used during this period 3. add safety factor 4. add estimated product used plus safety factor to get par stock amount needed 5. place label with amount of par stock on that item's shelf in storage |
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what's a drawback about using the standing order method?
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easily abused
manager must ensure delivery person shows manager items being removed and those brought in |
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what is one-stop shopping?
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the method becoming the most popular, in which you purchase goods from one supplier
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what's the downside of the one-stop shopping method?
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pricing might not be as competitive, and if the purveyor is out of an item, you don't have an easy backup
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what is the cost plus method?
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method used by chains, where they buy 100% of a product from one purveyor who sells at invoice price plus an AGREED UPON percentage
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what are sealed bids?
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method used by large food-service units such as schools, colleges, hospitals, institutions, agencies. The supplier bids on a product that will be used over a long period of time.
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what is the commissary method?
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method used by chains, franchise units where 100% of their goods come from a commissary, where orders for individual units are consolidated
Includes refrigerated, frozen, packaged and premade items |
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List some of the controls and safeguards . . .
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specs
purchase order price comparison sound receiving practices |
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calculating EP cost helps you more accurately determine what?
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which supplier's price is best for your needs
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what does a yield chart give?
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a register that gives EP weight of products as opposed to AP weight
average yield percent |
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what is a yield test?
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an analysis to determine the difference between a product's AP weight and EP weight.
the most accurate way to find out |
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to find yield percent in a yield test, weigh the product when it arrives. The result is the AP weight. Trim, then weigh the product again. Divide the EP weight by what to get the EP%?
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AP weight
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by using a yield test and calculating EP cost, you can find the real cost of a product, true or false?
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true
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what are some influences on prices the supplier quotes you?
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how quickly your restaurant pays its bills
whether supplier discounts if you pay in cash |
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what are the 2 categories of goods to purchase?
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perishable - 1-3 days of shelf life
nonperishable - a few months to a year of shelf life if stored properly |
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what are some factors affecting purchase of nonperishables?
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size of storage available
cash flow location (urban or rural) how often you buy (weekly, bimonthly, monthly) |
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It is necessary to take inventory each time you buy perishables, true or false?
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true
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you should only buy the amount of perishables you need until the next delivery, true or false?
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true
(unless management specifies wanting a certain safety factor) |
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what are the 2 categories of goods to purchase?
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perishable - 1-3 days of shelf life
nonperishable - a few months to a year of shelf life if stored properly |
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what are some factors affecting purchase of nonperishables?
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size of storage available
cash flow location (urban or rural) how often you buy (weekly, bimonthly, monthly) |
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It is necessary to take inventory each time you buy perishables, true or false?
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true
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you should only buy the amount of perishables you need until the next delivery, true or false?
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true
(unless management specifies wanting a certain safety factor) |
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what is a bid sheet?
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a listing of items needed, used to get price quotes from suppliers
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what are the steps in determining amount to purchase?
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determine amount needed until next delivery
inventory what's on hand subtract inventory from what's needed result is amount to purchase |
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only use the standing order method on perishables if what?
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if supplier agrees to give credit for excess inventory
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when goods arrive, put them away promptly to avoid what?
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shrinkage
spoilage theft |
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proper receiving means checking goods delivered against the purchase order and the invoice for what?
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count
weight price quality against the specs |
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what are needed to help the buyer make critical decisions?
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calculating AP and EP
conducting butcher tests knowing when to purchase |
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what are 2 critical controls?
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specifications
purchase order together they tie the purchasing, receiving and accounting functions |
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what's an important receiving objective?
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make sure you have:
correct product quality quantity |
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When receiving a shipment, you must check the math on the invoice even if computer generated, true or false?
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true, because humans input the info.
compare price on invoice with those on the purchase order to ensure they match. |
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what are some quality checks you'll do when receiving goods?
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open boxes, check for freshness, color, size, degree of ripeness
take temperatures of meat, seafood, poultry, fish, dairy, frozen goods. If items were ordered by count, count them. If by weight, weigh them. |
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on a butcher test, how do you get the retail value?
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contact supplier for current price
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