Wednesday, 14 March 2018

WEEK 5

CHAPTER 5: PURCHASING AND RECEIVING CONTROL


Hello here👯 Today we will in week 5 in chapter 5 is the purchasing and receiving control.



WHAT IS PURCHASING?
√ Purchasing is the process of getting the right product into a facility at the right time  and in the form that meets pre-established standards for quality, quantity and price

Purchasing specification:
√ Product name and specification number
√ Pricing unit
√ Standard or grade
√ weight range/size 
√ Processing and packaging
√ Container sizen
√ Itended use
√ The information such as product yield

Maximum and minimum inventory system
- Inventory is a detailed and complete list of goods in stock
- Economic Order and Quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering cost
- Determine on how much to re-order:

√ Never order more than your storage space can hold
√ Never order more supplies than you can use before they are expired 
√ Consider shipping cost when placing order 
 Formula:
Reorder level = Maximum usage x Maximum lead time 


Question 

Average usage    100 units per day
Minimum usage   60 unit per day
Maximum usage   130 units per day
Lead time            20-26 day
EOQ                     4,000 units

a) Reorder level

Maximum usage X Maximum lead time
= 130 X 26
= 3380

b) Maximum stock level

Re order level - (Min usage X Min lead time) + EOQ
= 3380 - (60 X 26) + 4, 000
= 3380 - 1560 + 4, 000
= 5820

C) Minimum stock level

Re order level - ( Average usage X Average lead time)
=3380 - (100 X 6.6)
=3380 - 660
= 2720


WHAT IS RECEIVING?
√ Receiving is a point of which foodservice operations inspect the products and take legal ownership and physical possession of the items ordered 
√ To ensure the food and supplies delivered matched established quality and quantity specifications  

Receiving process:


  • Inspect delivery and check purchase order
  • Inspect delivery against invoice
  • Accept order only if quality and quantity specifications are met
  • Complete receiving records
  • immediately transfer goods to storage


THANK YOU👯


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