Purchasing Functions and MRP in Foodservice Firms

Abstract

The study examines the purchasing functions and material requirement planning (MRP) in food service and hotel purchasing. Bill of materials (BOM) is one of the three main inputs to the MRP programme (the other two are the master schedule and the inventory record file). Purchasing food and supplies is somewhat unique in that it goes beyond specifying products and placing orders. In foodservice, the functions related to purchasing should be generally done by the same people who do the purchasing. The paper looks at array of purchasing functions in foodservice and offers an effective management of materials approach. It addresses situation where materials planning are established in consultation with other departments, the resources needed and translation of the master plan into specific materials requirement.  A detailed example in the foodservice firm is presented to explain the concept of MRP.

Keywords: Bill-of-materials, materials requirement planning, master production schedule, purchasing function