Purchasing and Inventory Control Flashcards

Which inventory valuation method is MOST practical for a dietary department using daily fresh produce?

Answer: FIFO

FIFO (First In, First Out) is most practical for perishable items like fresh produce because it ensures oldest items are used first, reducing spoilage and waste.

A group purchasing organization (GPO) benefits a dietary department primarily by providing what advantage?

Answer: Lower prices through collective buying power of multiple facilities

Group Purchasing Organizations aggregate the purchasing volume of multiple member facilities to negotiate lower contract prices from vendors.

What is the purpose of an ABC analysis in inventory management?

Answer: Classifying items by value to prioritize management attention

ABC analysis classifies inventory items into three categories based on annual usage value: A items (highest value, tightest control), B items (moderate), and C items (lowest value, simplest control).

What should a dietary manager do if a delivered product does not meet the written specifications?

Answer: Reject the product, document the rejection, and notify the vendor

Products not meeting specifications should be rejected at delivery, documented on receiving records, and the vendor notified to send a replacement or issue a credit.

Which storage practice prevents cross-contamination in a walk-in refrigerator?

Answer: Storing raw meats on the lowest shelves, below ready-to-eat foods

Raw meats must be stored on the lowest shelves in refrigerators to prevent juices from dripping onto and contaminating ready-to-eat foods stored below.

What is the advantage of using a prime vendor arrangement for a dietary department?

Answer: Simplified ordering with one primary supplier handling most product needs

A prime vendor agreement consolidates most purchasing through one primary supplier, simplifying ordering, ensuring reliable delivery schedules, and often providing competitive pricing.