School of Hospitality and Tourism Management

Diploma in Hospitality Management
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Other Subjects
1. DHM 100 The Lodging & Food Service Industry
2. DHM 241 Food and Beverage Management
3. DHM 250 Supervision in the Hospitality Industry
4. DHM 333 Managing Front Office Operations
5. DHM 261 Basic Hotel and Restaurant Accounting
6. DHM 270 Marketing In The Hospitality Industry
7. DHM 338 Housekeeping Management
8. DHM 354 Training & Development for the Hospitality Industry
9. DHM 362 Accounting for Hospitality Managers
10. DHM 446 Purchasing for Hospitality Operations
11. DHM 464 Planning and Control for Food and Beverage Operations
12. DHM 478 Convention Management & Services
13. DHM ENG English for Academic Purposes



Programs Offered
1. Diploma in Hospitality Management

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SUBJECT CODE : DHM 446
SUBJECT NAME : PURCHASING FOR HOSPITALITY OPERATIONS
SEMESTER : 3
CREDIT HOURS : 5
SCHOOL : School of Hospitality and Tourism Management
COURSE : Diploma / Diploma in Hospitality Management



Lecture Notes :
Past Exam Paper :
Syllabus : 446 Purchasing for Hospitalilty Operations.pdf   


OBJECTIVES
To cover the most innovative techniques available to hospitality purchasers including cost-plus and forward contracting. The idea is to shift from the routine maintenance of supply levels to a forward thinking, cost-saving program.

LEARNING OUTCOME
Week 1

  • Describe how the concept of purchasing has changed in recent years.
  • Explain the key points of value.
  • Describe the goals and benefits of effective purchasing.
  • Summarize the management activities related to purchasing.
  • Explain the relationship of line managers to staff members.
  • Compare and contrast available purchasing options.

    Week 2
  • Describe food service distribution: its history and its present state.
  • Explain the key elements in the procurement channel of distribution.
  • Summarise the different types of value added as products move through procurement channels.
  • List factors that affect selection of a purchasing program and factors that affect distribution decision.
  • Explain within-company distribution channels.

    Week 3
  • Describe the importance of supplier selection.
  • Compare the two styles of buying.
  • Compare methods of evaluating current suppliers with those used for new suppliers.
  • Summarize the pros and cons of one-stop shopping.
  • List the advantages and disadvantages of cooperative/group purchasing.

    Week 4
  • Define common terms relating to ethical standards.
  • Describe ways in which buyers are obligated to suppliers.
  • List important points in the negotiation process.
  • Cite some topics of negotiation.
  • Explain some major areas of law which affect purchasing.
  • Summarize antitrust laws.

    Week 5
  • Explain purchasing needs are determined.
  • Describe the relationship between quality and value.
  • List some ways in which quality may be measured.
  • Describe specifications, focusing on their development.
  • Summarize the disadvantages of ordering the wrong quantity.
  • Explain the ordering systems used for perishable and non-perishable items.

    Week 6
  • Explain the importance of source documents to the accounting function.
  • Differentiate between a requisition and a purchase requisition.
  • Explain the perpetual inventory system of storeroom control.
  • Compare methods of recording purchases.
  • Explain the basic steps involved in receiving products.
  • Describe the two methods by which bills may be paid.
  • Summarize how credit memos are used to adjust for delivery problems.

    Week 7
  • Assess the need for evaluation of the purchasing function.
  • Describe the roles of management, purchasing staff, and outside consultants in the evaluation process.
  • Explain the first step of the evaluation process: identifying goals.
  • Explain the second step of the evaluation process: assessing performance.
  • Explain the third step of the evaluation process: improving the purchasing system.
  • Explain how suppliers are evaluated.

    Week 8
  • Describe the economic factors that influence the production, supply, and pricing of meat.
  • Explain the major legislation affecting the meat industry.
  • Explain the grading services available for meat.
  • Explain the criteria and content of meat specifications.
  • List the sources of information available to assist in purchase decisions.
  • Explain the factors involved in price forecasting.
  • List and explain the six major systems for buying meat.

    Week 9
  • Describe the basic factors involved in processing beef carcasses.
  • Identify the major cuts of beef and the main traits of each.
  • Explain characteristics, sources, and pricing of ground beef.
  • List the popular cuts of pork and identify related quality factors.
  • Describe buying patterns for pork.
  • Explain basic characteristics of veal and factors that affect its production.
  • Explain basic characteristics of lamb and factors that affect its production.

    Week 10
  • Students should be able to understand and explain the important facts that were covered in the previous nine chapters.

    Week 11
  • Describe the fishing industry as a worldwide enterprise.
  • Summarize the major categories of commercial important shellfish.
  • Summarize the major categories of commercially important fish.
  • Summarize regulations and agencies affecting the fishing and industry.
  • Explain how a buyer can help ensure fish and shellfish quality.
  • Describe the basic buying systems for fish and shellfish.

    Week 12
  • Differentiate types of chicken and turkey, describing their major characteristics.
  • Describe other poultry and game birds of importance to the hospitality industry.
  • Describe the system for grading poultry.
  • List sources used in pricing poultry and summarize factors affecting prices.
  • Summarize the major areas of legislation affecting eggs.

    Week 13
  • Summarize the major areas of legislation affecting the diary industry.
  • Describe milk from the standpoints of specifications.
  • Briefly describe varieties, designations, and standards for cheeses.
  • Describe butter in terms of processing, packaging, quality and pricing.
  • Explain problems associated with specifications for frozen desserts.
  • Summarise factors which affect the pricing of dairy products.

    Week 14
  • Outline the major categories of fresh fruits, focusing on varieties, growing, areas, maturity, and storage factors.
  • Outline the major categories of fresh vegetables in terms of growing areas, availability, and quality factors.
  • Explain the marketing of fresh produce.
  • Describe fresh produce in terms of distribution options, processing and packaging.
  • Explain the need for specifications and quality control when buying processed fruits and vegetables.

    Week 15
  • Describe the major categories of baked goods distributors.
  • Characterize specifications for baked goods.
  • Identify different types of wheat flours.
  • Explain the major uses of fats and oils.
  • Identify characteristics and categories of spices.
  • Describe quality checks used in the purchase of dried vegetables and nut products.

    Week 16
  • Describe convenience foods.
  • Evaluate convenience foods in relation to their non-convenience counterparts.
  • List categories of convenience foods.
  • Explain the process involved in the make-or-buy decision.

    Week 17
  • Outline differences in liquor brands.
  • Differentiate between various types of beers.
  • Identify wines by place of origin and common designations.
  • Outline forms of distribution for alcoholic beverages.
  • Describe coffee from the standpoints of varieties, quality, stages of processing, and pricing.
  • Describe tea in terms of types, quality and grading, distribution and pricing.

    Week 18
  • Define capital equipment and discuss considerations in its purchase.
  • Explain how capital equipment manufactures market their products.
  • List major supply categories and discuss specific selection factors.
  • Outline the criteria used in contracting for services.
  • Summarize miscellaneous products and services which may be required by hospitality operations.

    Week 19
  • Present the fishing industry as a worldwide enterprise. Many commercially import of fish and shellfish are highlighted, concern for quality is at the forefront of our discussion.
  • Shifts the spotlight to poultry and eggs. Distribute pattern and pricing example will help the students develop a clear understanding of poultry and egg marketing.
  • Develop student understanding of the dairy products through the distribution channels. It also gives quality check for milk, cream, processed dairy products, frozen elements, cheese and butter.
  • Students will learn how to follow the costs of fresh products from the various seasonal areas, thus local distribution systems to the hospitality operation.
  • Students will learnt the distribution options for baked goods are analyzed in term of recent trends. They were also taught the contributing factors for purchasing wide of groceries.
  • Convenience food, purchasing it from the Management Standpoint.
  • The knowledge student gained from purchasing recognized beverage brands and private labels in light of costs and guest preference.
  • The important areas of expenses students must know about are purchasing equipment, services and supplies.
  • SYNOPSIS

    This subject covers a full range of purchasing management tasks, from listing supply needs to controlling inventory.






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