Answer to Question 1
Most methods for determining purchase quantities consider production needs, which must be forecasted. When manual systems are used, purchasers consider past, current, and expected sales trends. They develop forecasts that may be based on the percentage of estimated customers likely to purchase each menu item. Computerized forecasting systems enable managers to know the quantity of each ingredient that should have been used based on items served. This information allows managers to calculate changes in inventories and provides a check on the quantity of products that must be ordered.
Answer to Question 2
The purchase process involves five steps. First, the manager must designate a purchasing person or buyer. The buyer is the sole person responsible for purchasing goods for an operation. Taking this approach eliminates any confusion about what was purchased and when. Then the organization must identify what is needed to produce the menu and develop product specifications. Order guides and par sheets tell buyers when and how much to order. Purchase methods are chosen based on the specific needs of a given operation. Finally, vendors and suppliers are identified and a preferred vendors list is established.
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Describe the Conceptual Forecasting Framework in your own words.
Describe the Conceptual Forecasting Framework in your own words.