Kauai Purchasing Function PDF

**[Purchasing Function]** 1. [Identify Needs] The first step is to determine what ingredients are required based on their menu. They also need to forecast how much of each ingredient will be needed, based on the expected customer traffic and seasonal trends. E.g More smoothies in the summer. [S...

**[Purchasing Function]** 1. [Identify Needs] The first step is to determine what ingredients are required based on their menu. They also need to forecast how much of each ingredient will be needed, based on the expected customer traffic and seasonal trends. E.g More smoothies in the summer. [Supplier Selection ] They need to access suppliers based on quality and sustainability, as well as a supplier with various fresh produce, proteins, dairy and other ingredients. Once the suppliers are identified, they negotiate contracts to ensure competitive pricing, reliable delivery and consistent quality. [Receiving Ingredients ] When ingredients are received they go through a quality check to ensure they meet the company's standards for freshness. They are then stored in appropriate conditions such as refrigerators for fresh produce. [Delivery to customers] Once meals are prepared, they are either served to customers in store, or packaged for delivery in case of online orders. 2. Stock Control [First in, First out System ] [ ] Kauai follows a first in, first out method to manage stock, especially for perishable items like fresh produce. This means that the oldest stock is used first to ensure that ingredients are not stored for too long and that freshness is maintained. Kauai works closely with local farmers and smaller suppliers, focusing on sustainable practices. This strengthens relationships within the local supply chain, providing consistent access to fresh, high-quality ingredients. 3. [Economies and diseconomies of scale ] Economies of scale: As Kauai grows, it leverages economies of scale by purchasing raw materials in larger quantities, which allows it to negotiate better prices from suppliers. This bulk buying reduces the cost per unit, helping to lower overall operational costs. Diseconomies of scale: As the business scales, there is a risk of diseconomies of scale related to quality. To mitigate this, Kauai maintains stringent quality checks, ensuring that larger volume purchases do not compromised the freshness and quality of ingredients. This is done by employees doing regular audits and inspections. Production Function: 1.Kauai primarily uses a batch production system. This system suits their model because they focus on preparing meals in manageable quantities to ensure freshness, while also serving a significant number of customers efficiently. It suits them because they need menu flexibility. Kauais menu consists of salads, wraps, smoothies, and other fresh items that can be produced in small batches to maintain quality and freshness. This allows them to quickly adjust to customer demand without comprising on the quality of ingredients. 2\. Quality control is crucial to Kauais production processes for several reasons. Kauais focus on offering fresh, healthy meals means that ingredients must meet stringent freshness standards. Quality control ensures that raw materials, such as fruits, vegetables, and proteins, retain their nutritional value and are safe for consumption. This aligns the brands promise of providing high quality, nutritious meals to health-conscious customers. By doing this they also maintain customer trust and satisfaction. 3.Kauais choice of location allows them to be closer to local farms and suppliers, ensuring that fresh ingredients are delivered quickly and in optimal condition. This reduces transportation time, helping maintain the freshness of ingredients while also lowering logistical costs. The factory layout of Kauais kitchens and preparation areas is likely designed to support batch production, with dedicated areas for food prep, storage, cooking, and serving. This helps streamline processes, minimise movement, and ensure faster service while maintaining quality.