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21 Cards in this Set

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PURCHASING DEPARTMENT

Profit Center
Expense and Revenue responsibility

-Cafeteria
PURCHASING DEPARTMENT

Cost Center
Manage Expense but does not generate revenue

-Patient Services
PURCHASING POLICIES

Informal / Open Market
Buy Requests Quote on Specific Items based on Amount and Quality

-Urgent, Immeditiably delivery
-Small purchase
PURCHASING POLICIES

Formal / Competitive Bid Buying
Vendors compete on written specifications

Bids opened together.
PURCHASING POLICIES

Future Contracts
Purchase goods at a specific price to be shipped later (wholesale)
PURCHASING POLICIES

Prime Vending
Single vendor for majority of purchases
PURCHASING POLICIES

Centralized Purchasing VS Group
Centralized - Personnel in one office does all purchases for all departments in the organization

Group - Several organizations unit for purchasing
-Large volume discounts
PURCHASING POLICIES

Just in Time
Not stored OR recorded in inventory

Expensive
Purchase order / Requisition
Written recorded of items ordered
Standing Orders
Eliminate the need to call
i.e. weekly orders of bread or milk
Types of Written Specifications

-Technical
-Approved Brand Specs
-Performance Specs
Technical- objective and impartial test results (graded food items)

Approved Brand - quality by specifying brand name or label (heinz ketchup)

Performance - Functions characteristic (pH of detergent)
Vendor performance should evaluated...
after several orders have been filled
Food Broker
Does not own products
-Connects buyers with sellers
Subjective Forecasting
Used when relevant data is scarce

Delphi - expert opinion
Market Research
Panel Consensus
Exponential Smoothing Forecast
Uses software
Not uniformly weighted
Causal Models Forecast
Regression Analysis

Expensive to development

Medium/Long Term Forecast
Blind Check Receiving
Clerk gets blind invoice.
Lists merchandise but not quantities, weights or prices

Forces serious check of delivery

Costs more & takes longer
Fresh fish should arrive at ___ Degrees F
Fresh fish should arrive at <41 Degrees F
Dry Storage

Temp
Humidity
Separate from Cleaning supplies

Temp 50 - 70 degrees
Humidity 50-60%
Humidity for Fruits & Vegetables
High 85-90%
Refrigerated Storage

Temperature
-Fruits
-Meat Dairy
-Frozen Foods
Fruits & Vegetables 40 - 45 degrees

Meat, dairy, Eggs - 32 - 40 degrees

Frozen Foods - 0 to -10 degrees