| A | B |
|---|
| Bids | are specialized, written price lists created for the restaurant by a supplier. |
| Buyers | order all the food, beverages, supplies and equipment for the operation. |
| Channel of distribution | includes the particular businesses that buy and sell a product as it makes its way from its original source to a retailer. |
| Commissary | a distribution warehouse. |
| Co-op buying | businesses combine their orders to get a lower price. |
| Distribution | refers to the journey products make as they move from where they are grown to their final destination. |
| Economies of scale | the savings that a multi-unit business creates for itself by sharing the cost of purchasing expenses. |
| Form value | is the price savings created when a buyer purchases bulk quantities. |
| Formal purchasing method | buyers prepare purchase specifications for items they want. |
| Franchise | is a legal business relationship in which an in depend owner buys the right to use a company's name, products and logo. |
| Informal purchasing method | ask for a verbal price quote. |
| Intermediary sources | middle-men |
| Place value | refers to the differences in price of a product depending on where it needs to be shipped. |
| Primary sources | farmers and ranchers |
| Purchasing | the careful process of selecting from many choices, making sound decisions and developing solid relationships with vendors. |
| Quotes | verbal or written notice of a price that a supplier gives to a buyer. |
| Retailers | All Restaurants. |
| Service value | the different services that a vendor provides to a customers. |
| Supply and demand | When supplies are low but the demand is high--the cost goes up. |
| Time value | refers to the price retailers pay for the convenience of selecting the time of delivery. |
| Grades | labels that are given to foods to help buyers know what they are getting. |
| Organic produce | grown without the use of pesticides. |
| Packers' brand | packing company's own personal grading system. |
| Purchase order | is a legally binding written document that details exactly what the buyer is ordering from the vendor. |
| Requisition | The chef fills this out. It lists the item or service needed and send it to company headquarters. |
| Specifications | describe the characteristics of the products and services that an operation wants to buy. |
