Title: Explain the relationship between purchasing and other departments.
Course: Lodging Management (12159) > Section: Performing Financial Functions

Explanation should describe the role of the purchasing department, how it serves and supports other departments, and the process by which supplies are requisitioned.

Process/Skill Questions:

- What are the financial pitfalls of failing to communicate supply needs to the purchasing department?
- What is par stock? How is the level determined?
- What safeguards are in place to ensure that par stock is not depleted?
- Under what circumstances would a department’s spending budget be reduced for the month?
- What is the process for approving purchases?
- What is a purchase order?
- What issues/problems can the purchasing department face?