| A | B |
|---|
| purchasing | process of selecting from many choices, making sound decisions, and developing solid relationships with vendors |
| vendor | person or company that sells food or suppliers to retailers, such as restaurants |
| buyer | people who order all of the foodk beverages, supplies and equipment for foodservice operation |
| cooperative (co-op) buying | system in which buyers combine their purchase orders to receive lower prices from suppliers |
| economies of scale | the savings that a multi-unit business creates for itself by sharing the cost of operating expenses |
| comissary | distribution warehouse that provides goods to individual locations of a multi-unit company |
| franchise | legal business relationship in which an independent owner buys the right ot use a company's name, products, and logo |
| distribution | act of moving goods and services from where they are raised or made to where they are bought by customers |
| channel of distribution | the particular businesses that buy and sell a product as it makes its way from original source to retailer |
| primary sources | people or companies who grow, raise, or make the products that are eventually sold to customers |
| intermediary sources | businesses tha buy products from primary sources and sell them to retailers |
| retailers | people or businesses that sell their products directly to the public |
| formal purchasing methods | purchasing method in which businesses use the suppliers' bids to find the lowest price for their purchases |
| informal purchasing methods | system in which a business gets several verbal price quotes from suppliers before selecting one of them |
| bids | specialized, written price lists created for an organization by a supplier |
| quotes | verbal notice of a price that a supplier gives to a buyer during the purchasing process |
| time value | price retailers pay for the convenience of selecting the time of delivery from a supplier |
| form value | price savings created when a buyer purchases bulk quantities of food rather than individually portioned servings |
| place value | differences in price of a product due to the place where it needs to be shipped |
| transportation value | differences in prices that result from choosing a quicker but more expensive transportation for delivery of goods |
| service value | different services a vendor provides to its customers |
| supply and demand | economic imbalance between buyers and sellers that determines whether the price of a good or services will go up or down |
| specifications (specs) | detailed information about the products and services that an operation wants to buy |
| organic produce | fruits and vegetables grown without the use of pesticides or herbicides |
| USDA | government agency that inspects food |
| grading | a voluntary service paid for by packers that shows the quality of foods |
| grade | label foods like meat, eggs, and dairy to help buyers know the level of quality |
| packers' brand | packing company's own personal grading system |
| Institutional Meat Purchase Specifications (IMPS) | identification system that allows buyers to select type of meat, cut, and other details by a number |
| purchase order | legally binding written document that details exactly what the buyer is ordering from the vendor |
| requisition form | written request for ordered items or services |
| forecasting | estimating ahead of time what sales |
| production records | information used to help buyers effectively forecast their buying needs |
| production sheets | daily record of menu items served |
| stockouts | running out of an inventory item |
| overproduction | making too much food at a foodservice operation |
| daily food cost sheet | ongoing record of daily and monthly food costs for an operation |
| food cost percentage | daily food cost divided by daily sales figures |
| sales mix record | form that details the amount of each menu item sold over a specified period of time |
| cost-plus buying | supplier service in which the buyer is charged the supplier's costs plus a predetermined markup |
| one-stop shopping | supplier service in which the buyer receives a volume discount by purchasing as many items as possible from one supplier |
| stockless purchasing | supplier service in which a buyer purchases a large amount of goods at a discounted price; supplier agrees to store these goods and deliver when needed |
| standing orders | supplier service in which the supplier regularly delivers a pre-determined amount of items to a foodservice operation |
| delivery schedules | supplier service in which the buyer specifies day and time of delivery |
| lead times | the gap between placing an order and its delivery |
| reciprocal buying | supplier service in which the buyer agrees to do business withonlly supplier in exchange for the supplier's commitment to use and recommend the buyer's operation |
| substitutions | supplier service in which the buyer agrees to let the supplier fill urchase orders with appropriate substitutes if the specified item is unavailable |
| consulting services | service in which supplier provides helpful handling and safety instructions for products |
| optimal price | price that produces the best value to the buyer |
| AP (as purchased) price | price of food purchased before trimming and preparing |
| yield | amount of food that is actually served divided by the amount of food purchased |
| EP (edible portion) | food quantity after trimming and preparing |
| make-or-buy analysis | comparison of costs involved in preparing menu items from scratch or purchasing them pre-prepared |
| convenience foods | items that have been processed to make them easier to use and prepare |
| processed foods | basic type of convenience food that does not require such close pricing scrutiny (pasta, spices, oils, etc) |
| receiving | the process of inspecting, accepting, and, in some cases, rejecting deliveries |
| invoice | supplier's bill that lists all items delivered and their prices |
| request for credit | written record that ensures that buyer's account will be credited for a supplier's error in a delivery |
| receiving sheet | written rercord that accounts for all items that have been delivered and received by a restaurant |
| humidity | amount of water moisture in the air or in a contained space |
| inventory | record of all goods that a restaurant has on hand both in storage and in the kitchen prep area |
| periodic order method | inventory system in which the entire stock is reviewed on a regular basis to determine new purchase orders |
| perpetual inventory method | inventory system that keepstrack of the amount of food items on hand through the use of inventory cards |
| par stock | amount of inventory that shuld be on hand at all times |
| reorder point | level of inventory at which it is necessary to order more goods |
| issuing | official procedures employees use when taking an item out of the storeroom and putting it into production |
| pilfering | illegal taking of inventory items by employees for their personal use |
| FIFO (First in, first out) | inventory rotation system in which olderst stock is placed in front of or on top of newer stock |
