Specifications provide a precise description of a product's quality, factors, and requirements that will be used in production. They should be accurate, realistic, clear, simple, permit purchase from multiple suppliers, and allow flexibility. There are various purchasing methods including formal competitive bidding, negotiated purchases, purchase contracts, centralized purchasing through a common supplier, and warehouse club buying. Effective buyers represent their institution and have some legal knowledge in negotiations.

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

2.  Accurate
 Realistic
 Clear and simple
 Should permit purchase of readily available product
 Should have possibility of more than one supplier
 Flexibility

3. 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.

4.  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.

5. FORMAL BUYING METHODS
1. 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.

6.  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.

7.  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.

8. 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.

9.  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.

10.  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.

11. 1. WHAT IS FORECASTING?
2. GIVE ATLEAST 5 ESTABLISHING STANDARD
FOR RECEIVING ITEM.