Inventory Management & Supply Chain Flashcards

A personal chef notices that a frequently used spice is always either overstocked or out of stock. What is the best solution?

Answer: Analyze historical usage data to set an accurate par level and reorder point

Reviewing historical usage data allows accurate par level and reorder point calculation, smoothing out the cycle of over- and under-stocking.

When a personal chef receives an invoice that doesn't match the original purchase order price, what is the correct response?

Answer: Place the invoice on hold, contact the vendor to resolve the discrepancy before payment

Invoice discrepancies should be flagged and resolved with the vendor before payment to maintain accurate cost records and prevent overbilling.

Which of the following best describes a 'single-source' supply chain strategy?

Answer: Relying on one vendor for a specific product category, increasing efficiency but raising dependency risk

Single-sourcing concentrates purchasing for a category with one vendor, gaining efficiency and relationship depth but creating risk if that vendor fails.

A personal chef client insists on organic-only ingredients. Which supply chain step ensures compliance?

Answer: Verifying USDA Organic certification documentation from each supplier for all claimed organic items

USDA Organic certification requires documented verification; labels and verbal assurances without official certification do not guarantee compliance.

What is the main risk of using a 'push' inventory replenishment system rather than a 'pull' system for a personal chef?

Answer: Inventory is pushed based on forecasts rather than actual demand, leading to potential overstocking of perishables

Push systems replenish based on forecasts, which can result in excess perishable inventory that spoils before use when actual demand differs.

A personal chef uses a spreadsheet to track ingredient costs weekly. Which metric, calculated from this data, most directly informs purchasing decisions?

Answer: Cost per serving and food cost percentage by ingredient category

Cost per serving and food cost percentage by category reveal which ingredients drive costs and where purchasing adjustments will have the greatest impact.

When a supplier announces a significant price increase on a staple ingredient, what supply chain response best protects the personal chef's food cost?

Answer: Evaluate alternative suppliers, negotiate terms, or adjust menu planning to substitute lower-cost options

Evaluating alternatives, renegotiating, or menu-substituting provides a balanced, flexible response that maintains food cost targets without overreacting.