RESTAURANT
PURCHASING AND
INVENTORY
The Principles of Purchasing
,PRINCIPLE OF PURCHASING
What, when, how, how much, from whom, and to what price
buy, are decisions that must be made in the purchasin
department, and the Tightness of the decisions determines ho
well the responsibility is fulfilled. The purchasing policy followe
by any organisation to be successful, must be based upon th
following principles of purchasing.
, RIGHT QUALITY
The materials are the basic input and the quality of the outpu
right quality is determined by the cost of the material and the te
characteristics as suited to the specific requirements. The right
should be defined clearly and should be described in ter
specifications. Right quality implies that quality should be ava
measurable and understandable as far as practicable. In or
determine the Quality of a product, sampling schemes, will be use
, RIGHT QUANTITY
The right quantity of the materials is determined on the basis
economic ordering quantity (E.O.Q). It is advantageous to purchas
the materials on the basis of EOQ lots. The EOQ describes the siz
of the order at which the ordering costs and the inventory carryin
cost will be the minimum. If few orders involving large quantitie
are placed, the carrying cost will increase; however, the orderin
cost will decrease due to less number of orders.
PURCHASING AND
INVENTORY
The Principles of Purchasing
,PRINCIPLE OF PURCHASING
What, when, how, how much, from whom, and to what price
buy, are decisions that must be made in the purchasin
department, and the Tightness of the decisions determines ho
well the responsibility is fulfilled. The purchasing policy followe
by any organisation to be successful, must be based upon th
following principles of purchasing.
, RIGHT QUALITY
The materials are the basic input and the quality of the outpu
right quality is determined by the cost of the material and the te
characteristics as suited to the specific requirements. The right
should be defined clearly and should be described in ter
specifications. Right quality implies that quality should be ava
measurable and understandable as far as practicable. In or
determine the Quality of a product, sampling schemes, will be use
, RIGHT QUANTITY
The right quantity of the materials is determined on the basis
economic ordering quantity (E.O.Q). It is advantageous to purchas
the materials on the basis of EOQ lots. The EOQ describes the siz
of the order at which the ordering costs and the inventory carryin
cost will be the minimum. If few orders involving large quantitie
are placed, the carrying cost will increase; however, the orderin
cost will decrease due to less number of orders.
