Procurement

Acronyms

SPV

Acronyms

CARGO

DLA

Acronyms

FLC

What are the things Establishing requirements for replenishment

Average daily usage (ADU)

The average amount of a specific food items that is used daily based on:

Past 3 months haulage divided y 90=ADU

Answer explanation

12+16+36=64/90=.71ADU

72+80+28=2.00 ADU

Always round up to the nearest hundredth even if zeros

Establishing high and low limits

Semi-perishable foods

Perishable foods

Reasons for establishing high and low limits for each item of stock at least quarterly?

Maximum quantity of food to be

maintained on hand to sustain current operations

Maximum number of days endurance established by the TYCOM

Formula: maximum PEL*ADU= high limit