Inventory & Supply Management Flashcards

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

Answer: The minimum stock quantity needed to meet demand between deliveries

Par level is the minimum quantity of an item that must be on hand to cover demand until the next delivery.

A restaurant uses the FIFO method. Which product should be used first?

Answer: The item with the earliest expiration date

FIFO (First In, First Out) requires using the oldest stock first to prevent spoilage and waste.

Which metric best measures how efficiently a restaurant turns over its inventory?

Answer: Inventory turnover ratio

The inventory turnover ratio measures how many times inventory is sold and replaced in a given period.

A vendor offers a 5% discount for orders above $2,000. This type of pricing is called:

Answer: Volume discount pricing

Volume discounts reward buyers who purchase larger quantities, reducing per-unit cost.

What is a 'standing order' in restaurant supply management?

Answer: A recurring automatic delivery of set quantities on a scheduled basis

Standing orders automate routine deliveries of items needed consistently, reducing ordering workload.

When a delivery arrives, the receiving manager should FIRST:

Answer: Check the delivery against the purchase order for accuracy

Verifying the delivery against the purchase order ensures the correct items and quantities were received before signing.

Which of the following is an example of a perishable inventory control challenge?

Answer: Managing short shelf-life items to minimize spoilage

Perishables require careful rotation, temperature control, and usage planning to avoid spoilage losses.