Inventory & Supply Management Flashcards

What does 'lead time' mean in supply chain management for a restaurant?

Answer: The time between placing an order and receiving delivery

Lead time is the gap between when an order is placed and when the goods are actually delivered, which affects reorder point calculations.

ABC inventory analysis categorizes items based on:

Answer: Their value and frequency of use relative to total inventory cost

ABC analysis ranks inventory items where 'A' items are high-value/high-impact, 'B' are moderate, and 'C' are low-value items.

A restaurant manager notices that chicken breast is frequently out of stock before the delivery day. The best corrective action is to:

Answer: Increase the par level and reorder point for chicken breast

Raising the par level and reorder point ensures sufficient stock is maintained to meet demand between deliveries.

What is a 'blanket purchase order' in restaurant procurement?

Answer: A single order covering multiple scheduled deliveries over a set time period

A blanket purchase order commits to buying a set quantity from a supplier over a period, often securing better pricing.

Which of the following best describes a sole-source supplier arrangement?

Answer: Purchasing a specific item from only one approved vendor

A sole-source arrangement means only one supplier is approved for a specific item, which can create risk if the supplier has issues.

Which cost is NOT typically included when calculating total inventory carrying costs?

Answer: Supplier's profit margin on goods sold

Carrying costs include storage, insurance, spoilage, and capital costs — the supplier's profit margin is a purchase cost, not a carrying cost.

When evaluating a new food supplier, which factor is MOST critical for a restaurant manager?

Answer: Consistency of product quality and reliability of delivery schedules

Consistent quality and reliable delivery are paramount because they directly affect food quality and operational continuity.