Purchasing and Inventory Management Quiz

What are the four primary aspects of hospitality procurement?

• Sourcing, Vendor Management, Payment Terms, Inventory Control

• Sourcing, Contract Negotiation, Payment Terms, End of Life Management

• Sourcing, Inventory Management, Quality Control, Payment Terms

• Sourcing, Contract Negotiation, Quality Control, End of Life Management

What is the objective of just-in-time inventory management in the hospitality industry?

• To maximize on-hand inventory by ordering in bulk

• To minimize on-hand inventory by relying on frequent, smaller deliveries

• To minimize on-hand inventory by ordering in bulk

• To maximize on-hand inventory by relying on frequent, smaller deliveries

What is the purpose of the three-way matching process in purchasing?

• To compare different suppliers for the best deal

• To verify that an invoice is legitimate and ready to be paid

• To ensure that the purchase order matches the goods receipt

• To track the delivery of goods to the warehouse

What is the main difference between procurement and purchasing?

• Procurement includes several core business functions, while purchasing is a subset of procurement

• Procurement is concerned with payment terms, while purchasing is concerned with vendor management

• Procurement focuses on quality control, while purchasing focuses on inventory management

• Procurement is a subset of purchasing, while purchasing includes several core business functions

What is the purpose of forecasting techniques in inventory management?

• To make informed estimates that are predictive in determining the direction of future trends

• To track the historical data of the company

• To calculate the overall trend in a data set

• To analyze the relationship between a single dependent variable and several independent variables

What is the industry-accepted formula for calculating PAR level in inventory management?

• PAR level = (the amount of inventory used each month + safety stock) / number of deliveries each month

• PAR level = (the amount of inventory used each week + safety stock) / number of deliveries each week

• PAR level = (the amount of inventory used each week - safety stock) / number of deliveries each week

• PAR level = (the amount of inventory used each month - safety stock) / number of deliveries each month

What is the primary focus of contract negotiation in hospitality procurement?

• Long-term contracts for a range of different brand name locations

• Negotiating the quality of goods and services

• Negotiating payment terms for suppliers

• Short-term contracts for a range of different brand name locations

What is the main variable that influences inventory levels in the hospitality industry?

• Storage capacity

• Supplier delivery schedule

• Potential saving from increased purchase size

• Operating calendar

What is the primary purpose of end of life management in the hospitality industry?

• To establish quality standards for furniture and appliances

• To manage the removal and reimbursement process for replaced equipment

• To negotiate payment terms with suppliers

• To identify suitable vendors for sourcing materials

What are the tasks involved in procurement?

• The development of quality standards, Market placement, Company capabilities, Management issues

• The development of quality standards, Financing purchases, Negotiating price, Goods and services purchases

• The development of quality standards, Inventory control, Disposal of waste products, Payment to suppliers

• The development of quality standards, Inventory control, Disposal of waste products, Payment to suppliers