CRP Inventory & Supply Management 3 — Questions and Answers
Question 1: What is the purpose of a physical inventory count in a restaurant?
- To verify actual stock levels against recorded inventory (Correct answer)
- To determine the restaurant's annual revenue
- To audit payroll expenses
- To forecast next month's menu changes
Correct answer: To verify actual stock levels against recorded inventory
A physical count reconciles what is actually on hand with what the records show, revealing discrepancies or shrinkage.
Question 2: A restaurant's actual food cost is higher than its theoretical food cost. This discrepancy most likely indicates:
- Waste, theft, or over-portioning (Correct answer)
- Lower ingredient prices from suppliers
- Better menu pricing strategies
- Increased customer satisfaction
Correct answer: Waste, theft, or over-portioning
When actual cost exceeds theoretical cost, operational issues such as waste, theft, or portioning errors are usually responsible.
Question 3: Which document is used to request internal movement of inventory from a central storeroom to a kitchen?
- Requisition form (Correct answer)
- Purchase order
- Receiving report
- Invoice
Correct answer: Requisition form
A requisition form authorizes the transfer of items from storage to a department, maintaining accurate inventory records.
Question 4: EOQ stands for Economic Order Quantity. Its primary purpose is to:
- Minimize total inventory ordering and holding costs (Correct answer)
- Maximize the number of vendor relationships
- Determine the maximum menu price
- Reduce the number of menu items offered
Correct answer: Minimize total inventory ordering and holding costs
EOQ calculates the ideal order size that balances ordering costs with storage/holding costs to minimize total expense.
Question 5: What is 'shrinkage' in the context of restaurant inventory?
- Loss of inventory due to theft, spoilage, or administrative error (Correct answer)
- The reduction in food portion size during cooking
- A decrease in supplier lead times
- A reduction in storage space requirements
Correct answer: Loss of inventory due to theft, spoilage, or administrative error
Shrinkage refers to inventory loss from theft, spoilage, spillage, or recording errors that reduces available stock.
Question 6: A restaurant receives an invoice with different prices than those on the purchase order. What should the manager do?
- Contact the supplier to resolve the discrepancy before approving payment (Correct answer)
- Pay the invoice immediately to maintain the supplier relationship
- Discard the delivery and find a new supplier
- Accept the delivery and adjust the menu prices accordingly
Correct answer: Contact the supplier to resolve the discrepancy before approving payment
Price discrepancies must be resolved with the supplier before payment to ensure accurate cost control.
Question 7: Which storage principle requires that raw meats be stored below ready-to-eat foods in a walk-in cooler?
- Safe food storage hierarchy to prevent cross-contamination (Correct answer)
- FIFO rotation to reduce spoilage
- LIFO method to control costs
- ABC classification to prioritize high-value items
Correct answer: Safe food storage hierarchy to prevent cross-contamination
Storing raw meats below ready-to-eat foods prevents drip contamination from raw proteins onto foods that won't be cooked.
CRP Inventory & Supply Management 3
What is the purpose of a physical inventory count in a restaurant?