Procurement & Inventory Management Flashcards

What is the purpose of conducting a physical inventory count in a school nutrition operation?

Answer: To verify that actual stock matches recorded inventory levels

Physical inventory counts compare actual quantities on hand to recorded amounts, identifying discrepancies caused by theft, spoilage, or recording errors.

Which procurement method involves requesting prices from a limited number of qualified vendors for purchases under the simplified acquisition threshold?

Answer: Small purchase procedures

Small purchase procedures allow obtaining price quotes from an adequate number of qualified sources for purchases below the simplified acquisition threshold, streamlining the process.

What does the term 'par level' refer to in school nutrition inventory management?

Answer: The minimum quantity of an item that should be kept in stock

Par level is the predetermined minimum quantity of each inventory item that should be maintained to ensure uninterrupted meal service without overstocking.

Which type of contract allows schools to purchase products at a fixed price over a specified period?

Answer: Fixed-price contract

A fixed-price contract locks in product prices for the contract duration, protecting school nutrition programs from price fluctuations and simplifying budget planning.

What is 'inventory turnover rate' used to measure in school food service?

Answer: How quickly inventory is used and replaced

Inventory turnover rate measures how many times inventory is completely used and restocked during a given period, indicating operational efficiency and freshness of supplies.

When must a school nutrition program use the sole source procurement method?

Answer: When only one vendor can provide the required product or service

Sole source procurement is permitted only when the item or service is available from a single source, after reasonable effort to identify alternatives has been documented.