Production 1

1. Food and Beverage Operations
Tuesday, May 19, 2009 1

2. Chapter Objec-ves
 Roles of purchasing, receiving, storing &
issuing in food production preparation
 Roles of purchasing, receiving, storing &
issuing in alcoholic beverage service
 Benefits of Technology
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3. (5)
Purchase
(7) Order /
(2) Store Record Receiving
Issues Products
Required (8)
Products Invoice
(6)
Delivers
Food & Purchasing Products,
Storeroom Accounting
Beverage Dept. Invoice
Dept . (1) (3) Purchase (9)
Requisition Purchase Order / Payment
Form Requisition Record
Supplier
(4)
Purchase
Order /Record
The Purchase Process
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Typical Purchasing and Receiving storerooms also track costs and conduct inventory

4. Purchasing
 Inventory‐The amount of food,
beverages, and other suppliers on
hand
 Purchase Requisition‐A form
specifies the products that are
needed, how many are needed, and
how soon are needed.
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5. Purchasing (cont.)
 Purchase specification‐ A detailed
description of the quality, size,
weight, and other characteristics
desired for a particular item (Exhibit 2 p.
182)
 Purchasing directly affects the
bottom line
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6. Goals of a Purchasing Program
 Buy the right products
 Make‐or‐buy decisions
 Convenience foods
 Obtain the right quality
 minimum/maximum levels
 Price, storage space, waste,
pilferage, etc.
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7. Goals of a Purchasing Program
(cont.)
 Pay the right
price
 Deal with the
right supplier
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8. Techniques to Get Lower Prices
 Negotiate with the seller
 Consider lower quality products
 Evaluate need for products
 Discontinue supplier services
 Combine orders use Bulk
Purchases
 Reevaluate expensive items
 Pay cash
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9. Techniques to Get Lower
Prices (cont.)
 Speculate on price trends
 Change purchase unit size
 Be innovative
 Take advantage of suppliers' promotional
discounts
 Bypass suppliers
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10. Choosing a Supplier
 Location
 Facilities
 Financial stability
 Technical ability
 Honesty and
fairness
 Dependability
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11. The Receiving Process
1.Inspect products against purchase order
2.Inspect products against purchase
specifications
3.Inspect products against delivery invoice
4.Accept products
5.Move products to storage
6.Complete paperwork
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12. Quality Control in Storage
 Rotate food stocks
(FIFO)
 Store food at
proper
temperatures
 Clean storage
areas
 Ensure proper
ventilation
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Daily routines make training and cost control more
convenient

13. Recordkeeping
 Perpetual Inventory System –
allows managers to track item in
storage on an ongoing basis
 Physical Inventory System –
counts which is in storage on a
periodic basis‐usually at the end of
each month
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Physical Inventory is usually more accurate
operationally

14. Reducing Inventory Cost
 Carry a smaller amount of inventory
 Make certain minimum/maximum
inventory levels are correct
 Carry fewer product types
 Refuse to accept early deliveries
 Consolidate all products
 Date and rotate
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15. Purchasing Alcoholic Beverage
 House brand – a beverage brand served
when no special brand is requested by the
guest.
 Call brand – a specific beverage brand
that guests request by name when they
place an order
Inventory turnover rates are generally
lower for beverage than for foods
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16. Receiving Alcoholic Beverage
 Open cases and check bottles for accuracy
 After receiving, immediately move
beverages to secure storage areas
 When possible, assign purchasing and
receiving tasks to separate individuals
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17. Storing Alcoholic Beverage
 Bar Par ‐ the
number of
bottles that
should be on
hand behind
the bar.
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18. Technology
• How was the decision made to
purchase this particular system?
• What system was used previously?
• How did staff respond to the new
system?
• What are the benefits of using the
current system?
• How much did the technology cost
to purchase? How much does it cost
to maintain?
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19. Technology
 Just‐In‐Time (JIT) Inventory System‐
Keeping only “emergency” qualities of products
on hand and ordering /receiving the majority of
food and beverages “just in time” to issue and
use them.
 Prime supplier is a vendor that sells
products to a food service provider using a
just‐in‐time inventory system
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