CHAPTER 6 - PURCHASING

PURCHASING

Purchasing is the function of acquiring desired products and services.
Standards for - quality
                      - quantity
                      - price







THE MARKET

Market :

            -Marketing channel => that the food processing and distribution system, beginning with the   grower of raw food products and ending at the final consumption

              -Primary market=> basic source of food supply

             -secondary market=> that product accepted from the primary market and distributed to buyer

-broker=> serves as a sales representative for single manufacturer

• Market regulation : U.S. Food and Inspection Program

  => Interstate commerce : financial transactions (buying and selling goods) carried on between states

  => Intrastate commerce : financial transactions (buying and selling goods) carried on within state boundaries

• U.S. Department of Agriculture (USDA)
• Food and Drug Administration (FDA)

             =>Misbranded

             => Standards of identity

             => Standards of quality

             => Standards of fill

• National Marine and Fisheries Service
• U.S. Public Health Department
• Environmental Protection Agency
• Department of Treasury 

THE BUYER

• The art negotiation
• Ethics in purchasing
• type of purchasing

             =>Centralized purchasing

             => Group or cooperative purchasing

METHODS OF PURCHASING

• Informal /open market buying
• formal competitive bid buying
• Advantage and disadvantage
• Competitive bidding variations
• Variations on methods of purchasing

                   =>cost push purchasing

                   =>prime vending

                   =>blanket purchasing Agreement

                   =>just in time purchasing

• Market form of foods
• food quality
• quality standards
• grades
• grading and acceptance service 
• brands