SPECIFICATIONS- is a precise description of a product such as quality & other factors that will used in production.

Accurate Realistic Clear and simple Should permit purchase of readily available

product Should have possibility of more than one supplier Flexibility

1. Quotation request- needed for securing quotations & price list from the candidates of suppliers.

2. Quotation list/ call line- provide a ground for listing & comparing items of the same kind & quality.

3. Purchase request- list of specific item needed for ordering especially perishable items.

4. Grocery list- list of item not included in the market list. Usually canned & bottled product.

5. Market list- list of perishable food item.

Compiled list of item needed from each purveyor. A formal written notice to the supplier that has been selected to furnish the supplies needed.

THE BUYER- it represent the institution in negotiation with market representative & should have some knowledge & understanding of legal requirements.

FORMAL BUYING METHODS1. Formal competitive bid buying- this is the most

forma method of purchasing, w/c involves sending written invitation to potential suppliers requesting for a price quotation / a formal bid on a list of items.

2. Negotiated purchase- this method is often used when the formal competitive method is deemed impractical.

in this method, a contract is made between the buyer & the seller for the delivery of a specified item of product.

4. Centralized purchasing- this method is usually done in hotels. This makes use of a scheme where the requirements of individual units of a large operation are consolidated by a central common to the other unit.

This method is one version of centralized purchasing but is practiced where small food service w/ similar requirements.

6. Warehouse club buying- this is a purchasing method where a membership in a club for w/c one pays a fixed free enabling the buyer to purchase item at a lower priced.

1. Prime method/ one step method- in this method a single supplier carries a wide range of item & the buyers enters into an agreement for the supplier to delivery needed item of specified quality & quantity at regular schedule for a stated period of time.

2. Open market buying- this is the most common buying procedure, w/c uses defined product quality & specification.

In this method there is an arrangement w/ supplier to provide a predetermined quality of a particular item on daily or either period basis without having to contact the supplier every time.

4. Quotation & Order sheet method- this method makes use of summarization of all items that need to be purchased, stating the quality, quantity & amount of orders.

This is the method where the buyer expresses his willingness to purchase specified item at any price & therefore criticized the supplier to deliver the said goods to him in the absence of any previous price quotation.

6. Cost plus buying- this method involves mutual buyer & the seller.

1. WHAT IS FORECASTING?

2. GIVE ATLEAST 5 ESTABLISHING STANDARD FOR RECEIVING ITEM.