Chapter 4 - Purchase orders: How much stuff should i buy? This chapter’s objectives are to: Discuss the consequences of over-and underordering, calculate acceptable order sizes, ep weight, and edible product yield, examine and diagnose causes of product loss, prepare sales forecasts needed to enhance the accuracy of purchasing decisions. | Yield Tests Sales Forecasting Order Size Adjustments to Order Sizes Discuss the consequences of over-and underordering. Calculate acceptable order sizes, EP weight, and edible product yield. Examine and diagnose causes of product loss. Prepare sales forecasts needed to enhance the accuracy of purchasing decisions. Buyers must balance carrying or storage costs (inventory on the shelves) and stockout costs (irritated, disappointed customers). Options: Software applications Conduct yield tests Forecast sales Determine order size Step One: Buy enough of the product to conduct two or more tests (or get free samples) Step Two: Calculate the item’s as-purchased (AP) weight Meats, fish and poultry may weigh less then when purchased due to moisture loss shrink allowance may be addressed on the specification sheet) Third Step: use the exact service production procedures used in the restaurant Calculate weight of waste Subtract from AP weight Result will be the edible-portion (EP) weight (also . | Yield Tests Sales Forecasting Order Size Adjustments to Order Sizes Discuss the consequences of over-and underordering. Calculate acceptable order sizes, EP weight, and edible product yield. Examine and diagnose causes of product loss. Prepare sales forecasts needed to enhance the accuracy of purchasing decisions. Buyers must balance carrying or storage costs (inventory on the shelves) and stockout costs (irritated, disappointed customers). Options: Software applications Conduct yield tests Forecast sales Determine order size Step One: Buy enough of the product to conduct two or more tests (or get free samples) Step Two: Calculate the item’s as-purchased (AP) weight Meats, fish and poultry may weigh less then when purchased due to moisture loss shrink allowance may be addressed on the specification sheet) Third Step: use the exact service production procedures used in the restaurant Calculate weight of waste Subtract from AP weight Result will be the edible-portion (EP) weight (also called usable weight or servable weight) Perform test more than once and average results Five Causes of Product Waste Mise en place – unavoidable cutting/trimming loss Production loss – shrinkage due to cooking; also trimming of fat after cooking, discarding of end cuts, etc. Pilferage – eating and drinking on the job (cont.) Five Causes of Product Waste (cont.) Unanticipated mistakes Style of service – all-you-can-eat items, food bars, free refills on drinks, etc., are hard to average Analyze a product’s use over two weeks, divide by number of customers for average portion size Best Option: conduct yield tests in your own kitchen Second Best Option: Use the edible yield percentages in The Book of Yields or the Chef’s Book of Formulas, Yields and Sizes Third Best Option: take the word of your purveyor A salmon weights 16 lbs (AP) and yields 12 lbs (EP) What is the yield percentage? Answer: EP ÷ AP × 100 = Yield Percentage 12 ÷ 16 = .75 × 100 = 75% If the AP price for an item is $ .
