Title: Explain formal and informal purchasing methods.
Course: Culinary Arts I (16052-I) > Section: Exploring the Purchasing and Receiving of Goods

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?