Accredited suppliers, are usually assigned “Supplier Code Color” to evidence approval for their accreditation.

The 2^nd sequence of flow of control in ordering and purchasing is ORDERING.

The 2^nd procedure for making allocation is to establish net allocation.

Survey and accreditation of suppliers is designed to ensure that consistently provide materials, equipment and services in accordance with established standard of performance.

Data on the on hand quality can be generated by doing an actual count.

The 1^st procedure in determining stock requirements is adjust the yield in the recipe.

The meaning of LTU is LEAD TIME USE.

All delivery receipts/ sales invoices should be indicated in the purchase receipt.

The 4^th requirement in determining stock is to provide allowance for safety stock.

The 4^th sequence in flow of control in ordering and purchasing is approval of market list and sourcing of suppliers.

To calculate for Minimum Par is equals to Minimum par + safety stock + LTU.

The serial code of the check and the check voucher should be properly monitored.

The 1^st procedure in processing of purchase order is to Purchase Order shall be prepared upon awarding of the bid and shall be issued to the winning bidder.

The Purchaser shall scout for suppliers who can meet the quality and quantity required by the end users.

The 3^rd procedure in making allocation is to prepare a sales forecast.

In sourcing for suppliers there should be at least 2 quotations.

All purchases should be recorded daily.

The Accounting Department shall maintain current and updated records of Company’s accredited suppliers.

The 6^th sequence of flow of control in ordering and purchasing is to generate a market list.

The safety stock can range from 5 – 20% of the allocation and shall be discretionary depending on how fast the items sell.

The signed/approved form shall be endorsed to purchasing Office for the purchaser to canvass for quotations.

The supplier is willing to give terms usually two months.

PO means Purchase Order.

The 2^nd procedure in processing of purchase order is the Purchaser shall be prepared the Purchaser Order and indicate the quoted prices under the appropriate column.

Suppliers should be never be told of the other suppliers quotations.

The 3^rd procedure in determining stock requirements is to get the consolidated requirements for the different ingredients.

The 4th procedure in determining stock requirements is to Compute for total allocations based on forecast of sales.

Purchases are regulated within the limits of the budgets.

One of the responsibility of the Purchasing Department is to Maintain and update price list.