Answer to Question 1
The purpose of proper receiving practices is to ensure products ordered are delivered in the amount and quality indicated on the purchase order. In addition, the price of products delivered is verified at the time they are received and any variations in price are noted in writing. The purpose of proper storage is to ensure the security and quality of products stored until they are needed. Storage areas should always must be maintained at the proper temperature to ensure product quality, and locked to ensure product security.
Answer to Question 2
When purchasing beverage products, managers have two primary concerns: what to buy and how much to buy. Buying the wrong products can damage the operation's ability to properly serve its target market. Buying too much ties up capital, impacts cash flow, and requires additional storage space. It also increases the risk of theft and quality deterioration. Buying too little can create product outages that impact drink production and lead to disappointed customers.
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