Answers to Chap 8 “Purchasing and Receiving Terms” Fill in as we go…….

Purchasing The buying of goods and services for use in a business.

Receiving The process of making sure that the items delivered are the items that were ordered.

Storage The process of placing items in a safe, secure place until they are needed.

Inventory The process of counting and keeping track of all the items in storage.

Purchaser The expert in buying goods and services for a business.

Specification The detailed description of the product that is needed…..also called specs.

In Stock On hand, either in the kitchen or in the store room.

Par Stock The maximum amount of a particular item that is allowed to be in storage at any one time.

Reorder point The minimum amount of an item in storage; the point at which more of an item must be ordered.

Perishable A product that can spoil easily.

Cost-effective buying Buying the most products at the best quality for the least amount of money.

Supplier A business from whom supplies are purchased; also called a vendor…..of food are called purveyors.

Bid A document that states what the supplier will charge for a specific product.

Order A list of products that a business wants to purchase.

Purchase Order The form used for submitting orders to a supplier.

Receiving Dock The place where deliveries are received, usually near where the items will be stored.

Shipment All the items delivered from one supplier at one time.

Invoice A bill, usually prepared by the supplier; contains a complete list of what has been delivered, the quantity, and price of each item.

Delivery Slip A piece of paper prepared by the supplier that contains a complete listing of the quantity and type of items delivered.

Credit Memorandum A piece of paper that lists the returned products; also called a credit slip.

Repackaged Foods Foods that have been partially used and not stored in their original containers after opening.

FIFO First in, First out, meaning that the first food item received should be the first food item used.

Issuing The process of making items available to employees; also called requisitioning.

Requisitioning Same as issuing……….

Requisition Form A form used to request items from inventory.

Inventory control The process of keeping track of items in inventory.

Physical Inventory The process of taking inventory and a person actually goes to the storage room and physically counts every item.

Perpetual Inventory The process of keeping inventory where a written record of the total of each item is kept, then adding whenever new items come in or subtracting when items are issued.