Purchasing, Receiving, and Inventory Management
Core Concepts
Purchasing aligns specifications, vendor selection, and ordering with forecast and par levels. Candidates must understand product specifications (grade, size, trim, pack), bid versus standing-order purchasing, and the role of yield testing. Receiving verifies quantity, quality, temperature, and documentation, and rejects nonconforming product. Inventory management covers FIFO rotation, perpetual versus periodic counts, par levels, and shrinkage control. Know the difference between physical count and book inventory and how variance signals theft or waste.
Traps in Questions
Distractors confuse specification (what you require) with vendor selection (who supplies it). Receiving questions often test rejection over acceptance of out-of-temperature or short-weight deliveries. Watch for FIFO versus LIFO labeling traps and for questions that treat a par level as an order quantity. Shrinkage questions reward recognizing that unexplained inventory variance is a control problem, not a pricing one.
Rule of Thumb
Receive against the purchase order and specification; check temperature, count, and condition before signing. Rotate FIFO: new stock behind old. Investigate any inventory variance beyond an agreed tolerance.
Worked Example
A delivery of fresh fish arrives at 48°F. Reject it: fresh fish should be received at 41°F or below (or on ice). Document the rejection, notify the vendor, and note it on the invoice rather than accepting and cooling it down.