Needs Determination

Needs Determination & Purchasing
Objectives:
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

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Define the quantity of perishable and non perishable goods to be purchased.
Select the supplier(s) who meet(s) the establishment criteria (quality, quantity
and price standards).
Place the order following the appropriate procedures.
Complete the different documents required.

Determination of quantity when ordering non perishablegoods
Periodic order method:
A variable quantity of goods is ordered on a fixed date.
Perpetual inventory method
A fixed quantity of goods is ordered on a varying date.
Determination of quantity when ordering perishable goods
The stock of this merchandise is kept to the minimum because of their short usable
life. The order is placed taking only into consideration their immediate need andthe
time for delivery.
The market list
List of perishable goods used to determine the quantity to order, to write price
information given by different suppliers and to place the order with the most
competitive supplier.

Item
Poultry
Poulet prép.
Pigeon de Bresse
Poitrine d'oie fumée
Foie gras de canard cru
Foie gras bloc
Foie gras d'oie cru
Magret de canard
Magret de canard fuméDinde prép.
Suprême de poulet

Hotel Continental Montreux
Market List (extract)
Needs
In stock
To order

1

Suppliers
2
3

4

Other ordering documents
Purchase request
Document completed by the requesting sector each time a non perishable food
item needs to be ordered.
Purchase order
Document completed by the Purchasing manager or the Purchasing agent when
ordering.
Purchaserecord
Written proof filled in by the purchasing manager or purchasing agent each time an
order is placed orally.

Hotel California Lausanne
Purchase Record

Nº: 1234

Unit

________________________________

Ordered by:
Quantity

________________________________

Date of order:

Item

Supplier:

________________________________

Unit price

Total price

Bill NºComments

Standing order
Agreement between an establishment and a supplier for an automatic delivery of a
given quantity of an item, on a regular basis. The supplier could also pass by on a
regular basis and restock certain items to an agreed level.

Exercise - Periodic order
In a periodic inventory ordering system, specify the quantity to order for next delivery.
1.

Data
Item:Delivery unit:

Box of 5 packs

Daily need:

10 kg

Time for next delivery:

14 days

Day of ordering:

Each 1st and 15th of the month

Today:

Monday, 15th of June

On hand today:

170 kg

Par stock:

2.

Coffee beans, pack of 1 kg

180 kg

Data
Item:
Delivery unit:

24-bottle case

Daily need:

300 bottles

Time for next delivery:

3 days
only)

Today:Saturday morning

On hand this morning:

44 cases

Par stock:

3.

Lager beer “Cardinal”, 33-cl. bottles

60 cases

(delivery

on

Data
Item:

Vegetable cocktail, 3/1 can

Delivery unit:

6-can box

Daily need:

8 cans

Today:

1st of June

Ordering date:

On the 5th of each month

Delivery:

On the 28th of each month

Par stock:

300 cans

On handtoday:

236 cans

Monday

and

Thursday

Exercise - Perpetual inventory
In a perpetual inventory ordering system, specify the day of the next order and the
quantity to order.
1.

Data
Item:
Daily needs:

42 boxes

Time for next delivery:

4 days

Today:

Monday

Reorder point:

200 boxes

On hand this morning:

276 boxes

Par stock:

2.

Deep-frozen Frenchfries, box @ 5 kg

320 boxes

Data
Item:
Delivery unit:

Box @ 12 packs

Daily needs:

67 litres

Time for next delivery:

18 days

Today:

Wednesday

Reorder point:

120 Boxes

On hand this morning:

1'842 litres

Par stock:

3.

Milk, UHT, 1 litre pack

240 boxes

Data
Item:

Norwegian smoked salmon, side at about 1,400 kg
vacuum packed

Daily needs:...