Purchasing and Inventory Control Flashcards

A dietary manager uses an inventory system where the oldest stock is used first to ensure proper rotation and minimize waste. When calculating the value of the remaining inventory, this system assumes it consists of the most recently purchased items. Which inventory valuation method is being used?

Answer: First-In, First-Out (FIFO)

The First-In, First-Out (FIFO) method is an inventory management and valuation strategy where the first goods purchased are the first ones used or sold. This practice aligns perfectly with proper food rotation to prevent spoilage and ensures that the inventory on hand is valued at the cost of the most recent purchases.

A dietary aide is receiving a shipment of fresh milk, which is a Time/Temperature Control for Safety (TCS) food. What is the most critical action to perform before accepting the delivery?

Answer: Verifying the milk's temperature is 41°F or below

For TCS foods, verifying that the product is at a safe temperature upon receipt is a critical control point (CCP) to prevent bacterial growth. If the milk is delivered above 41°F, it should be rejected. While checking dates and quantities is important, temperature control is the most critical step for food safety at the point of receiving.

A dietary department uses a software system that automatically deducts items from inventory records as they are used in production, providing a real-time balance of stock on hand. This method of inventory tracking is known as:

Answer: Perpetual inventory

A perpetual inventory system continuously updates inventory records in real-time as items are received or issued. This differs from a physical inventory, which involves a manual count of items at a specific point in time.

The dietary manager needs to order canned green beans. The established par stock level is 8 cases. A physical count shows there are 2 cases on the shelf and 1 case opened in production. How many cases should the manager order to return to the par level?

Answer: 5 cases

The par stock system involves ordering enough product to bring the current inventory up to the established par level. The current inventory on hand is 3 cases (2 full + 1 open). To reach the par level of 8 cases, the manager must order 5 cases (8 - 3 = 5).

A dietary manager is calculating the inventory turnover rate for the previous month. The cost of food sold was $75,000. The beginning inventory was $18,000 and the ending inventory was $12,000. What was the inventory turnover rate?

Answer: 5.0

The inventory turnover rate is calculated by dividing the Cost of Goods Sold (COGS) by the average inventory value. First, find the average inventory: ($18,000 + $12,000) / 2 = $15,000. Then, divide the COGS by the average inventory: $75,000 / $15,000 = 5.0. This means the facility sold and replaced its entire inventory 5 times during the month.

When developing a purchase specification for fresh chicken breasts, which of the following details is MOST important for ensuring consistent quality and portion control?

Answer: The weight range per piece (e.g., 4 oz portions)

A purchase specification should contain precise, measurable characteristics. Specifying the weight range per piece is crucial for ensuring portion control, predictable cooking times, and consistent plate presentation. While price is a factor in purchasing, the weight specification defines the actual product quality and usability for the intended menu item.