Disadvantages with having excess inventory on hand


Assignment Problem: Answer the following question:                                           

1. Assume that two suppliers sell the same quality of meat for the same price. What type of supplier services would you seek from them? Why? Which supplier service would you value enough so that if one supplier provided it and the other did not, you would purchase your meat from the former? Why?

2. What problems will a foodservice operation incur if it experiences several back orders?

3. What is a major disadvantage associated with having excess inventory on hand?

4. When should the buyer visit a supplier's facilities?

5. List three advantages and three disadvantages of using convenience foods.

Determine Requirements:

The buyer helps to determine the varieties and amounts of products, services, equipment, and furnishings that the hospitality enterprise requires.

For a buyer to make these decisions collectively: the buyers consult with other management officials and with those individuals who will eventually use the purchased items to decide what the operation needs.

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Supply Chain Management: Disadvantages with having excess inventory on hand
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