Chapter 5: About Purchasing The Right Quantities

1. A Stock-out can occur as a result of:

Employing a perpetual inventory system

Over-purchasing

Inadequate menu engineering

Under-purchasing

Under-purchasing can lead to a stock-out because it means that the company has not bought enough inventory to meet the demand. This can be caused by various factors such as inaccurate forecasting, insufficient budget, or poor inventory management. When there is under-purchasing, the company may run out of stock before the next order arrives, resulting in a stock-out situation. This can lead to lost sales, dissatisfied customers, and potential damage to the company's reputation.

Explanation

Under-purchasing can lead to a stock-out because it means that the company has not bought enough inventory to meet the demand. This can be caused by various factors such as inaccurate forecasting, insufficient budget, or poor inventory management. When there is under-purchasing, the company may run out of stock before the next order arrives, resulting in a stock-out situation. This can lead to lost sales, dissatisfied customers, and potential damage to the company's reputation.

2. If I am projecting 165 covers and 95% of these will have entrees, and we are projecting that 32% of these will have Grilled Pork Tenderloin with lobster Mushroom Duxelle, how many portions does the kitchen need to prepare?

51

Depends on what chef wants

56

Impossible to calculate

Of the 165 covers, 95% will be ordering entrees
165 * 0.95 = 157 entrees

of the 157 entrees, 32% will be pork tenderloin
157 * 0.32 = 51

Explanation

Of the 165 covers, 95% will be ordering entrees
165 * 0.95 = 157 entrees

of the 157 entrees, 32% will be pork tenderloin
157 * 0.32 = 51

3. A Times Series Analysis:

Is an analysis of a series of factors over a given time.

Is a way of weighting historical data with respect to its recency in order to determine more accurate sales forecasts.

Weighs past sales information with best guess estimates in order to come up with a measured approach to purchasing.

All of the above.

Time Series Analysis: Allows for weighting of historic data with respect to its recency. This method attaches more importance to recent trends over a certain period.

Explanation

Time Series Analysis: Allows for weighting of historic data with respect to its recency. This method attaches more importance to recent trends over a certain period.

4. The 3 main sources of purchasing data are:

Standardized Recipes, Inventory Sheets, Sales History

Standardized Recipes, Inventory Sheets, Supplier’s Lists

Sales Fresh Sheets, Sales Forecasts, Menu Mix

Sales History, Sales Forecasts, Menu Mix

Standardized recipes provide information on the exact quantities and ingredients needed for each menu item, allowing for accurate cost calculations. Inventory sheets track the amount of ingredients and supplies available, helping to manage stock levels and avoid shortages. Sales history data provides insights into past purchasing patterns, allowing for better forecasting and planning. Together, these three sources provide comprehensive information on purchasing data, enabling effective inventory management and cost control in a food service operation.

Explanation

Standardized recipes provide information on the exact quantities and ingredients needed for each menu item, allowing for accurate cost calculations. Inventory sheets track the amount of ingredients and supplies available, helping to manage stock levels and avoid shortages. Sales history data provides insights into past purchasing patterns, allowing for better forecasting and planning. Together, these three sources provide comprehensive information on purchasing data, enabling effective inventory management and cost control in a food service operation.

5. A par amount is:

The minimum level of inventory needed to carry production between delivery dates.

The maximum level of inventory needed to carry production between delivery dates.

The difference between what a property what one has sold and has in inventory.

Is the number of purchased units per order period.

A par amount refers to the minimum level of inventory needed to carry production between delivery dates. This means that it is the amount of inventory that should be maintained in order to ensure smooth production and delivery without any disruptions or shortages. It is important to have this minimum level of inventory to avoid any delays or interruptions in the production process.

Explanation

A par amount refers to the minimum level of inventory needed to carry production between delivery dates. This means that it is the amount of inventory that should be maintained in order to ensure smooth production and delivery without any disruptions or shortages. It is important to have this minimum level of inventory to avoid any delays or interruptions in the production process.

6. Which of the following is NOT a consequence of over-purchasing

Cash Flow Problems

Increased Chance of Spoilage

Increased Chance of Theft

Lack of Storage

None of the above

Over-purchasing refers to buying more than what is needed. None of the consequences listed, such as cash flow problems, increased chance of spoilage, increased chance of theft, or lack of storage, are a result of over-purchasing. Therefore, the correct answer is "None of the above."

Explanation

Over-purchasing refers to buying more than what is needed. None of the consequences listed, such as cash flow problems, increased chance of spoilage, increased chance of theft, or lack of storage, are a result of over-purchasing. Therefore, the correct answer is "None of the above."

7. Which of the following is a disadvantage of an automated beverage control system?

Sales control

Maintenance Costs

Perception of Smaller Portions/Lower Quality Drinks

Large Bottles/Lower Costs

B&C

The disadvantage of an automated beverage control system is that it can lead to higher maintenance costs. Additionally, it may create a perception among customers that the portions are smaller or the quality of the drinks is lower.

Explanation

The disadvantage of an automated beverage control system is that it can lead to higher maintenance costs. Additionally, it may create a perception among customers that the portions are smaller or the quality of the drinks is lower.

8. Using the following information and the common usage method of calculating par inventory requirements please identify the correct answer. We use 10kg of flour per day, and we order every 3 days. How much flour do we need to order?

30 kg

24 kg

35 kg

43 kg

If 10 kg of flour is used a day then 70 kg is used a week
10 kg / day * 7 days / week

To determine the amount of flour to order every three days the amount of flour used in three days must be calculated.

70 kg / 3 days = 24 kg

Explanation

If 10 kg of flour is used a day then 70 kg is used a week
10 kg / day * 7 days / week

To determine the amount of flour to order every three days the amount of flour used in three days must be calculated.

70 kg / 3 days = 24 kg

9. Given the past 6 weeks of sales data of Crème Brûlée sales please estimate the next periods sales using a times series analysis: Last week: 250; the week before 248; the week before 230; Before that 265; Before that 235; and before that 225.

242

243

241

247

245

To solve this problem find the number of weeks (n)
(sales of week n * n) + (sales of week n-1 * n-1) + (sales of week n-2 * n-2) ....

(250*6) + (248*5) + (230*4) + (265*3) + (235*2) + (225)
= 5150

divide the total by the number of weeks
(n) + (n-1) + (n-2) +...

6 + 5 + 4 + 3 + 2 + 1 = 21

So the final calculation ends up being
5150 / 21 = 245

Explanation

To solve this problem find the number of weeks (n)
(sales of week n * n) + (sales of week n-1 * n-1) + (sales of week n-2 * n-2) ....

(250*6) + (248*5) + (230*4) + (265*3) + (235*2) + (225)
= 5150

divide the total by the number of weeks
(n) + (n-1) + (n-2) +...

6 + 5 + 4 + 3 + 2 + 1 = 21

So the final calculation ends up being
5150 / 21 = 245

10. Which of the following is not a standard food cost control procedure:

Consistent use of cost control tools.

Staff training.

Staff meals

Monitoring Staff eating/drinking areas

Minimizing food waste

Staff meals are not a standard food cost control procedure because they involve providing meals to the staff. While staff meals may be a perk or benefit for the employees, they do not directly contribute to controlling food costs. Standard food cost control procedures typically focus on measures such as consistent use of cost control tools, staff training, monitoring staff eating/drinking areas, and minimizing food waste. Staff meals, on the other hand, are an additional expense that can increase food costs rather than control them.

Explanation

Staff meals are not a standard food cost control procedure because they involve providing meals to the staff. While staff meals may be a perk or benefit for the employees, they do not directly contribute to controlling food costs. Standard food cost control procedures typically focus on measures such as consistent use of cost control tools, staff training, monitoring staff eating/drinking areas, and minimizing food waste. Staff meals, on the other hand, are an additional expense that can increase food costs rather than control them.