Explanation should include
- definitions of the terms formal purchasing method and informal purchasing method
- the benefits and uses of each method
- reasons most food service operations use competitive (open-market) buying or single-source buying.
Process/Skill Questions:
Thinking
- What are the differences between formal (bid) and informal (phone order) purchasing methods?
- What are the advantages of competitive buying vs. single-source buying?
- What are the disadvantages of competitive buying vs. single-source buying?
- How does the size of the food service operation affect the purchasing process?
Communication
- When is a formal purchasing method necessary?
- What communication skills are needed to use each purchasing method?
Leadership
- What can a small, independent food operation do to reduce purchasing costs?
- How can the switch from an informal to a formal purchasing method be made?
Management
- How does a school cafeteria's purchasing operation typically function?
- Why is a monitoring system needed to maintain inventory?