CEH Purchasing and Procurement 1

Question 1

Which purchasing method involves buying goods in large quantities to obtain a lower unit price?

Accepted Answer

Volume or quantity buying

Answer

Volume or quantity buying leverages large purchase orders to negotiate lower per-unit costs, reducing overall supply expenses.

Question 2

What is a 'par stock' level in housekeeping procurement?

Accepted Answer

The minimum quantity of a supply item needed to meet operational demands between deliveries

Answer

Par stock is the established minimum quantity needed to sustain operations until the next scheduled delivery without running short.

Question 3

Which document formally requests a vendor to supply goods or services at a specified price?

Accepted Answer

Purchase order

Answer

A purchase order is an official document sent to a vendor authorizing the purchase of specific goods or services at an agreed price.

Question 4

What is the primary purpose of obtaining competitive bids from multiple vendors?

Accepted Answer

To ensure the best value for the hotel's money

Answer

Competitive bidding ensures the property receives the best combination of price, quality, and service by comparing multiple vendor proposals.

Question 5

A 'blanket purchase order' is best described as:

Accepted Answer

A standing agreement to purchase a set quantity of goods over a defined period at a fixed price

Answer

A blanket purchase order establishes a long-term agreement with a vendor for recurring purchases, locking in pricing and simplifying the ordering process.

(CEH) Certified Executive Housekeeper Practice Test

(CEH) Certified Executive Housekeeper Practice Test

CEH Purchasing and Procurement 1