CRP Inventory & Supply Management 2

Question 1

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

Accepted Answer

The minimum stock quantity needed to meet demand between deliveries

Answer

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

Question 2

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

Accepted Answer

The item with the earliest expiration date

Answer

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

Question 3

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

Accepted Answer

Inventory turnover ratio

Answer

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

Question 4

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

Accepted Answer

Volume discount pricing

Answer

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

Question 5

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

Accepted Answer

A recurring automatic delivery of set quantities on a scheduled basis

Answer

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

(CRP) Certified Restaurant Professional Practice Test