CRM Inventory Management & Supply Chain 3 — Questions and Answers
Question 1: A restaurant manager notices that actual food costs are 5% higher than theoretical costs. The FIRST step to investigate is:
- Raise menu prices immediately
- Audit portion sizes, waste records, and inventory counts (Correct answer)
- Replace the current supplier with a cheaper alternative
- Reduce staff hours to offset the cost increase
Correct answer: Audit portion sizes, waste records, and inventory counts
Auditing portion sizes, waste, and inventory records helps identify the specific cause of the variance before taking corrective action.
Question 2: What is 'dead stock' in a restaurant context?
- Inventory that has passed its expiration date and cannot be used (Correct answer)
- Items that have not been ordered for more than 90 days
- Stock held in a secondary storage location
- Product reserved exclusively for catering events
Correct answer: Inventory that has passed its expiration date and cannot be used
Dead stock refers to inventory that has expired or become unusable, representing a direct financial loss to the restaurant.
Question 3: Which document should a receiving clerk compare against when accepting a delivery to verify price and quantity?
- The production schedule
- The purchase order (Correct answer)
- The previous week's invoice
- The vendor's promotional catalog
Correct answer: The purchase order
The purchase order contains the agreed-upon prices and quantities, making it the reference document for verifying incoming deliveries.
Question 4: A restaurant uses the ABC inventory classification system. Items in category 'A' are characterized by:
- Low value but high transaction volume
- High value representing the largest share of total inventory cost (Correct answer)
- Items nearing expiration requiring immediate use
- Seasonal items ordered less than four times per year
Correct answer: High value representing the largest share of total inventory cost
ABC analysis categorizes 'A' items as high-value items that typically represent about 80% of total inventory expenditure despite being a small percentage of items.
Question 5: What does 'days on hand' (DOH) measure in inventory management?
- The number of days between delivery schedules
- How many days the current inventory will last at current usage rates (Correct answer)
- The shelf life remaining on perishable items
- The average time to process a purchase order
Correct answer: How many days the current inventory will last at current usage rates
Days on hand calculates how long current stock will last based on average daily usage, helping managers time reorders appropriately.
Question 6: When a vendor substitutes a product without prior approval during a delivery, the receiving manager should:
- Accept the substitution if the price is lower
- Reject the unauthorized substitution and document it (Correct answer)
- Accept it temporarily and notify the chef
- Sign the invoice with a notation and keep the product
Correct answer: Reject the unauthorized substitution and document it
Unauthorized substitutions should be rejected to maintain quality standards and contractual terms; accepting them can set a problematic precedent.
Question 7: Which storage practice BEST prevents cross-contamination in a restaurant walk-in cooler?
- Storing all items in sealed bags regardless of type
- Using color-coded shelving labels for different food categories
- Storing ready-to-eat foods above raw proteins on separate shelves (Correct answer)
- Keeping all proteins together on the lowest shelf
Correct answer: Storing ready-to-eat foods above raw proteins on separate shelves
Ready-to-eat foods must be stored above raw proteins to prevent drips or contact from contaminating foods that won't be cooked again.
CRM Inventory Management & Supply Chain 3
A restaurant manager notices that actual food costs are 5% higher than theoretical costs.
The FIRST step to investigate is: