CRM Inventory Management & Supply Chain 2

Question 1

What does the term 'par level' refer to in restaurant inventory management?

Accepted Answer

The minimum stock quantity needed to meet demand until the next delivery

Answer

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:

Accepted Answer

Increase the par level and order quantity for that item

Answer

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?

Accepted Answer

LIFO

Answer

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:

Accepted Answer

(Cost of food sold ÷ total food revenue) × 100

Answer

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?

Accepted Answer

To reconcile actual stock with theoretical usage and identify variances

Answer

Weekly physical counts allow managers to compare actual inventory against theoretical usage and catch shrinkage, waste, or theft.

(CRM) Certified Restaurant Manager Practice Test