Inventory Management & Supply Chain Flashcards

What is the purpose of a perpetual inventory system compared to a periodic system?

Answer: It tracks stock levels continuously in real time as items are added or used

A perpetual inventory system updates stock records continuously with every transaction, providing current on-hand quantities at any moment.

A personal chef is planning menus for a two-week engagement. Which approach best integrates menu planning with inventory management?

Answer: Build a prep list from the menu plan, then create a purchase order based on par levels and current stock

Linking menu plans directly to prep lists and purchase orders aligned with par levels ensures accurate procurement without over- or under-ordering.

Which of the following is an example of 'shrinkage' in a personal chef's inventory?

Answer: Loss of inventory due to spoilage, theft, or recording errors

Shrinkage refers to inventory losses from spoilage, theft, spillage, or administrative errors that reduce stock below expected levels.

A personal chef sources locally grown produce directly from a farm. Which supply chain advantage does this arrangement primarily provide?

Answer: Shorter supply chain with greater freshness, traceability, and often lower transportation costs

Direct farm sourcing shortens the supply chain, improving freshness, enabling ingredient traceability, and often reducing transportation costs.

Which storage practice helps maintain proper inventory rotation in a walk-in refrigerator?

Answer: Labeling all items with the date received and placing newer stock behind older stock

Date labeling combined with placing newer stock behind older stock enforces FIFO rotation and reduces spoilage.

A personal chef is negotiating terms with a new produce vendor. Which contract term most directly reduces supply chain risk?

Answer: Including a quality guarantee clause with defined rejection and credit procedures

A quality guarantee clause with defined rejection and credit procedures protects the chef if substandard product is delivered.

What does 'days on hand' (DOH) measure in inventory management?

Answer: How many days the current inventory supply will last based on average daily usage

Days on hand calculates how long current stock will last by dividing on-hand quantity by average daily usage rate.