Inventory Management & Supply Chain Flashcards

What does the term 'par level' refer to in restaurant inventory management?

Answer: The minimum stock quantity needed to meet demand until the next delivery

Par level is the minimum inventory quantity a restaurant must keep on hand to operate smoothly between deliveries.

A restaurant experiences 'stock-outs' of a popular menu item every Friday. The BEST corrective action is to:

Answer: Increase the par level and order quantity for that item

Increasing par levels and order quantities ensures sufficient stock is on hand to meet predictable peak-day demand.

Which inventory costing method assigns the cost of the most recently purchased items to goods sold first?

Answer: LIFO

LIFO (Last In, First Out) assumes the most recently purchased inventory is the first to be used or sold.

A restaurant's food cost percentage is calculated as:

Answer: (Cost of food sold ÷ total food revenue) × 100

Food cost percentage equals cost of food sold divided by total food revenue, multiplied by 100.

What is the PRIMARY purpose of conducting a weekly physical inventory count?

Answer: To reconcile actual stock with theoretical usage and identify variances

Weekly physical counts allow managers to compare actual inventory against theoretical usage and catch shrinkage, waste, or theft.

Which of the following BEST describes 'yield percentage' in food production?

Answer: The ratio of edible product to the as-purchased weight of an ingredient

Yield percentage measures how much usable product remains after trimming, cooking, or processing relative to the original purchase weight.

When evaluating suppliers, which factor is MOST critical for maintaining consistent food quality?

Answer: Adherence to product specifications and temperature standards

Suppliers must consistently meet product specs and maintain proper temperature controls to protect food quality and safety.