CRM Inventory Management & Supply Chain 2 — Questions and Answers
Question 1: What does the term 'par level' refer to in restaurant inventory management?
- The minimum stock quantity needed to meet demand until the next delivery (Correct answer)
- The maximum amount of any item allowed in storage
- The average daily usage of a product over the past month
- The reorder quantity calculated from vendor lead times
Correct answer: The minimum stock quantity needed to meet demand until the next delivery
Par level is the minimum inventory quantity a restaurant must keep on hand to operate smoothly between deliveries.
Question 2: A restaurant experiences 'stock-outs' of a popular menu item every Friday. The BEST corrective action is to:
- Remove the item from the Friday menu
- Increase the par level and order quantity for that item (Correct answer)
- Switch to a different supplier with faster delivery
- Train staff to upsell alternative items
Correct answer: Increase the par level and order quantity for that item
Increasing par levels and order quantities ensures sufficient stock is on hand to meet predictable peak-day demand.
Question 3: Which inventory costing method assigns the cost of the most recently purchased items to goods sold first?
- FIFO
- LIFO (Correct answer)
- Weighted average
- Specific identification
Correct answer: LIFO
LIFO (Last In, First Out) assumes the most recently purchased inventory is the first to be used or sold.
Question 4: A restaurant's food cost percentage is calculated as:
- (Cost of food sold ÷ total food revenue) × 100 (Correct answer)
- (Total food revenue ÷ cost of food sold) × 100
- (Beginning inventory + purchases − ending inventory) ÷ labor cost × 100
- (Ending inventory ÷ beginning inventory) × 100
Correct answer: (Cost of food sold ÷ total food revenue) × 100
Food cost percentage equals cost of food sold divided by total food revenue, multiplied by 100.
Question 5: What is the PRIMARY purpose of conducting a weekly physical inventory count?
- To satisfy health department reporting requirements
- To reconcile actual stock with theoretical usage and identify variances (Correct answer)
- To determine the number of menu items to offer next week
- To calculate labor scheduling needs for the upcoming week
Correct answer: To reconcile actual stock with theoretical usage and identify variances
Weekly physical counts allow managers to compare actual inventory against theoretical usage and catch shrinkage, waste, or theft.
Question 6: Which of the following BEST describes 'yield percentage' in food production?
- The ratio of edible product to the as-purchased weight of an ingredient (Correct answer)
- The percentage of menu items sold versus total items available
- The gross profit margin on a specific dish
- The percentage of inventory used within its shelf life
Correct answer: The ratio of edible product to the as-purchased weight of an ingredient
Yield percentage measures how much usable product remains after trimming, cooking, or processing relative to the original purchase weight.
Question 7: When evaluating suppliers, which factor is MOST critical for maintaining consistent food quality?
- The supplier's delivery vehicle age
- Adherence to product specifications and temperature standards (Correct answer)
- The supplier's geographic proximity to the restaurant
- Whether the supplier offers volume discounts
Correct answer: Adherence to product specifications and temperature standards
Suppliers must consistently meet product specs and maintain proper temperature controls to protect food quality and safety.
CRM Inventory Management & Supply Chain 2
What does the term 'par level' refer to in restaurant inventory management?