CULINARY ARTS

COURSE SYLLABUS

Purchasing for Hospitality Operations

TITLE:

PROGRAM COURSE NUMBER:

LECTURE HOURS:

PREREQUISITE (S):

2

RSTO 1325

LAB HOURS:

CREDIT HOURS:

2

03

CONTACT HOURS:

64

None

PROGRAM RESPONSIBLE FOR SYLLABUS MAINTENANCE:

PREPARED/REVISED BY:

Culinary Arts

DATE: (Instructor)

Carl R. Eads REVIEWED BY:

05/09/14 DATE:

(Department Chair)

APPROVED BY:

DATE: (Division

Director)

I.

COURSE DESCRIPTION (CATALOG DESCRIPTION)

The instruction in the purchasing of food productions including seasonal, pre-prepared, and items purchased in quantity. Topics include inventory standards and controls.

II. TASK LISTING FOR COURSE

64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74.

Requisition food. Write a bid specification. Check for cost effectiveness. Maintain inventory of food and non-food items. Enforce security of food. Verify chit. Rotate food stock. Check deliveries for food spoilage. Record food wastage. Label food items. Review cost of food items.

III. COURSE OUTLINE (Instructional Units)

TOTAL HOURS:

TASKS COVERED A. The Concept of Selection and Procurement B. Distribution C. Forces Affecting the Distribution System D. An Overview of the Purchasing Function E. The Organization and Administration of Purchasing F. The Buyers Relations with Other Company Personnel G. The Purchase Specification: An Overall View H. The Optimal Amount, Price, Payment Policy and Supplier I. Typical Ordering Procedures J. Typical Receiving Procedures K. Storage Management Procedures L. Security in the Purchasing Function M. Selection and Procurement of Specific Food Items

64

68,69,70,71

THEORY

112

LAB

.

I.IV. STUDENT LEARNING OUTCOMES (By Units)

A.

The Concept of Selection and Procurement 1. Explain the term selection. 2. Explain the term procurement. 3. Discuss the advantages of studying the broad view of the purchasing function. 4. Discuss the differences between the way the small and the large independents generally do their purchasing. 5. Compare and contrast between the way the small and the large independents generally do their purchasing. 6. Describe “co-op buying”. 7. Describe two typical purchasing procedures found in multi-units and franchises. 8. Describe how the unit of a large hospital chain probably does its purchasing. 9. Describe three duties of a vice-president of purchasing in a large hotel or restaurant chain. 10. Explain why a small independent hospitality operation be interested in co-op buying. 11. Explain why a small a franchise operation might be interested in co-op buying. 12. Explain the term “purchasing”. 13. Requisition food. 14. Apply purchasing and food production principles.

B.

Distribution 1. List the major sources in the hospitality channels distribution. 2. Explain how these major sources in the hospitality channels of distribution differ from one another. 3. Explain how the channel of distribution for services differ from one another. 4. Describe the four economic values. 5. Discuss how the need for financing adds to the ultimate cost of a product. 6. Explain the buyer’s normal role in determining which economic values the company should provide for itself. 7. Explain the term “end-user” services. 8. Describe the typical distribution system for fresh meat. 9. Explain the primary difference between a broker and a merchant wholesaler. 10. List five typical intermediaries found in the distribution system for FFE. 11. Explain the difference between a “control state” and a “license state.”

C.

Forces Affecting the Distribution System 1. Explain “monopolistic competition.” 2. List examples of how the political force affects the hospitality channels of distribution. 3. Discuss ethical buying. 4. Explain the goals of the following: a. Sherman Act

5. 6. 7. 8. 9. 10. 11. 12. 13.

D.

b. USDA c. FDA d FTC e. Tying Agreement f. Exclusive dealing g. Quantity limits provision of the Robinson-Patman Act h. Agency Act i. Consignment Sale j. Rebate k. ICC l. Federal Meat Inspection Act m. Perishable Agricultural Commodities Act n. Poultry Products Inspection Act o. IRS p. Department of the Interior Explain how buyers and sellers might be influenced by advertising and promotion. List examples of legal price discrimination practiced by a merchant wholesaler. List examples of illegal price discrimination practiced by a merchant wholesaler. Explain the major differences between the AP price and the EP cost. Describe the value equation. Explain how a restaurant operator utilizes the value equation to increase patronage. Explain the primary differences between a basic commodity and a product that has additional from value added to it. Explain why the federal government exempts the fresh produce growers from antitrust laws. Describe what must be done to poultry before it can be sold in interstate commerce.

An Overview of the Purchasing Function 1. Name some potential benefits of trade relations. 2. Explain the notion- It is a good idea to allow competition to “borrow a cup of sugar” once in a while. 3. Explain what is meant by the purchasing function’s goal of maintaining the company’s competitive position. 4. Describe ABC analysis and its benefits and drawbacks. 5. Name the five major objectives of the purchasing function. 6. Name three types of research activities that a buyer might perform. 7. Explain value analysis. 8. Explain the typical methods of AP price forecasting. 9. Explain plant visits. 10. Explain minimizing investment in inventory. 11. Explain “back-door” selling. 12. Explain quality purchasing procedures. 13. Explain back orders.

14. Explain seasonal purchasing. E.

The Organization and Administration of Purchasing 1. Describe the typical organizational patterns for the independent operation and for the multiunit operation. 2. Explain how a co-op purchasing organization works. 3. Discuss the owner of a small restaurant and the opportunity to join a purchasing co-op. 4. List the major responsibility of a corporate purchasing director. 5. Explain the main difference between a direct and an indirect control system. 6. Explain the primary differences between a commissary and a central distribution center. 7. List some advantages and some disadvantages of a franchisee purchasing from a company commissary. 8. Describe the national contract and its primary advantage of such a contract. 9. Develop a job specification for an assistant food buyer. 10. Develop a job specification for a full-time buyer. 11. Describe the national contract.

F. The Buyer’s Relation with Other Company Personnel 1. Explain job specifications. 2. Explain job description. 3. Explain purchasing policies. 4. Explain quantity limits. 5. Explain price limits. 6. Explain reciprocal buying. 7. Explain performance evaluation. 8. Explain materials budget. 9. Explain inventory budget. 10. Explain stock out. 11. Explain approval supplier list. 12. Describe the buyer’s major working relationship with the accountant and with the sales manager. 13. List some specific conflicts that can occur between the full-time buyer and the chef. 14. Explain why a hospitality organization might create several buyer-user positions. 15. Discuss if full-time buyers should have control over a production supervisor’s employees and their use, or abuse, or raw materials. 16. List three advantages and disadvantages of taking the to shop around for the best value. 17. List several reasons for an owner-manager to develop specific purchasing guideline. 18. Explain the approximate food, beverage, and non-food supplies inventory value of a full-service restaurant with an annual sales volume of $100,000. 19. Explain procedures for purchasing convenience items.

G. The Purchase Specification: An Overall View 1. Explain how a purchase specification differs from a product specification. 2. List reasons hospitality operations develop purchase specifications. 3. List what information is included on the typical purchasing specification. 4. Identify factors that influence the types of information included on the purchase specification. 5. Identify items to be bid upon. 6. Describe at least five measures of quality. 7. List six items a product specification for fresh meat could include. 8. Discuss the primary advantages of specs. 9. List three ways a food processing plant might undergo continuous government inspection. 10. List some problems that the buyer will encounter if overly reliant on U.S. grades. 11. Write a bid specification. 12. Check for cost effectiveness. H. The Optimal Amount, Price, Payment Policy and Supplier 1. Explain how the par stock method works. 2. Describe EOQ and ROP. 3. List the benefits and drawbacks of EOQ and ROP. 4. List the advantages and disadvantages of utilizing rules of thumb to direct inventory management procedures. 5. Describe the concept of opportunity cost. 6. Explain the most important part of storage cost. 7. Explain the storage life of a product. 8. Explain how a buyer relates AP price to EP cost. 9. List the various ways of reducing AP prices. 10. Explain what is meant when a food item is “slacked out.” 11. Explain the primary purpose of the pick-up memo. 12. Explain the significance of the expiration date placed on the package label of food products. 13. Enforce security of food. 14. Verify chit. 15. Rotate stock. 16. Check deliveries for food spoilage. K. Storage Management Procedures 1. List the objectives of storage management and what is normally needed to achieve the objectives. 2. Describe how a perpetual inventory system works. 3. Explain what the purpose of taking a monthly physical inventory. 4. Explain some ways of shortening the inventory-taking procedures. 5. Explain the difference between “theft” and pilferage. 6. Define the following terms: a. Skimming.

b. Bin card. c. Stock requisition. d. Pan stock. e. Theoretical inventory value. f. Inventory sales. 7. Label food items. 8. Establish inventory standards and controls. L. Security in the Purchasing Function 1.

Explain what security problems are at risk when the buyer also receives deliveries. 2. Explain whether employee supervision is the best deterant to theft and pilferage. 3. Explain what some of the relatively inexpensive physical barriers that an owner-manager can use to deter theft and pilferage. 4. Explain why an owner-manager is generally reluctant to put up a cash deposit. 5. Explain why paying with a check is preferred to using cash paid-out. 6. Explain why a hospitality operator requires employees to be bonded. 7. Explain what the major advantages and disadvantages are of becoming a house account. 8. Explain what a hospitality operator would do to protect the company from being defrauded by an invoice scan and “inventory padding.” 9. Explain when a hospitality operator should use undercover agents or integrity shoppers in his or her operation. 10. Explain what “inventory substitutions” are and how can they be prevented. 11. Record food wastage. M. Selection and Procurement of Specific Food Items 1. Discuss the selection factors, purchasing, receiving, storing and issuing of the following items: a. Fresh produce b. Dairy products c. Eggs d. Poultry e. Fish f. Meat g. Alcoholic/Nonalcoholic beverages h. Processed produce and other grocery items i. Non-food expense items. j. Services k. Furniture, fixtures, and equipment

II.V. CORRELATION TO WECM LEARNING OUTCOMES The student will: 1. Apply purchasing and food production principles. (A-14) 2. Explain quality purchasing procedures including seasonal purchasing. (D-12, D-14) 3.

Explain procedures for purchasing convenience items. (F-19)

4.

Establish inventory standards and controls. (K-8)

5.

Organize a storage area and store food items. (M-3)

6.

Receive and store food and dry good items. (M-4)

III.VI. COURSE SCANS COMPETENCIES Competency Number 1A

Competency Statement

Instructional/Evaluation Methodology

Time

1B

Money

1C

Material/ Facilities Human Resources

Selects goal-relevant activities, ranks them, allocates time, and prepares and follows schedules Uses or prepares budgets, makes forecasts, keeps records, and makes adjustment to meet objectives Acquires, stores, allocates and uses materials or space efficiently Assesses skills and distributes work accordingly, evaluates performance and provides feedback Contributes to group effort

1D

2D

Participates as Member of a Team Teaches others New Skills Serves Clients/Customers Exercises Leadership

2E

Negotiates

2F

Works with Diversity

3A

Acquires and Evaluates information Organizes and Maintains Information Interprets and Communicates Information Uses computers to Process Information Understands Systems

2A 2B 2C

3B 3C 3D 4A 4B

Monitors and Corrects Performance

4C

Improves or Designs System Selects Technology

5A 5B 5C 6A

Applies Technology to Task Maintains and Trouble Shoots Equipment Reading

Works to satisfy customers’ expectations Communicates ideas to justify position, persuade and convince others, responsibly challenges existing procedures and policies Works toward agreements involving exchange of resources, resolves divergent interests Works well with men and women from diverse backgrounds

Knows how Social, organizational, and technological systems work and operates effectively with them Distinguishes trends, predicts impacts on system operations, diagnoses systems’ performance and corrects malfunctions Suggest modifications to existing systems and develops new or alternative systems to improve performance Chooses procedures, tools or equipment including computers and related technologies Understands overall intent and proper procedures for setup and operation of equipment Prevents, identifies or solves problem with equipment, including computers and other technologies Locates, understands, and interprets written information in prose and in documents such as

6B

Writing

6C

Arithmetic/ Mathematics

6D

Listening

6E 7A 7B

Speaking Creative Thinking Decision Making

7C

Problem Solving

7D 7E

Seeing Things in the Mind’s Eye Knowing How to Learn

7F

Reasoning

8A

Responsibility

8B

Self-Esteem

8C

Sociability

8D

Self Management

8E

Integrity/ Honesty

manuals, graphs and schedules Communicates thoughts, ideas, information and messages in writing; and creates documents such as letters, directions, manuals, reports, graphs, and flow charts Performs basic computations and approaches practical problems by choosing appropriately from a variety of mathematical techniques Receives, attends to, interprets and responds to verbal messages and other cues Organizes ideas and communicates orally Generates new ideas Specifies goals and constraints, generates alternatives, considers risks and evaluates and chooses best alternative Recognizes problems and devices and implements plan of action Organizes and processes symbols, pictures, graphs, objects and applies it in solving a problem Uses efficient learning techniques to acquire and apply new knowledge and skills Discovers a rule or principle underlying the relationship between two or more objects and applies it in solving a problem Exerts a high level of effort and perseveres toward goal attainment Believes in own self-worth and maintains a positive view of self Demonstrates understanding, friendliness, adaptability, empathy and politeness in group settings Assesses self accurately, sets personal goals, monitors progress and exhibits self-control Chooses ethical courses of action

IV.VII. REQUIRED TEXT/MANUALS See Course Information Sheet for most current textbook adoption.

V.VIII. REQUIRED STUDENT MATERIALS AND SUPPLIES See Course Information Sheet for most current textbook adoption.

VI.IX. GRADING POLICY A.

Grading Criteria Identify the grading criteria for the course.

B.

Grading Scale 90-100 ………………………………… A 80-89 …………………………………...B 70-79 …………………………………...C 60-69 …………………………………. *D Below 60 ……………………………… F *Course must be repeated

VII.X. DEPARTMENTAL PARTICIPATION POLICY Class participation and punctuality are expected and are critical to your success in this course. It is the student’s responsibility to withdraw from class, and you should check with your Instructor regularly on your status in this regard. Non-participation in classes to the standard set by your Instructor can result in a grade of “F” for the course, regardless of test scores, etc. NO MAKE-UP TESTS will be given. There is no make-up on daily quizzes and assignments are due at the beginning of class on the day they are due.