tailieunhanh - Lecture Purchasing: Selection and procurement for the hospitality industry (8th edition): Chapter 11 - Feinstein, Stefanelli

Chapter 11 - The optimal payment policy. After completing this chapter, students will be able to: Describe and differentiate the tenets of cash management, identify the major objective of a payment policy, critique the costs of paying sooner than necessary and of paying too late, compare and contract the bill-paying procedures that can be employed by hospitality operators. | The Optimal Payment Policy 11 Updated Chapter Name, EGM YOU SHOULD BE ABLE TO: Describe and differentiate the tenets of cash management. Identify the major objective of a payment policy. Critique the costs of paying sooner than necessary and of paying too late. Compare and contract the bill-paying procedures that can be employed by hospitality operators. TENANTS OF CASH MANAGEMENT Keep your money as long as possible Pay your bills at the correct time Collect monies due as fast as you can OBJECTIVES OF PAYMENT POLICY Keep money as long as possible Pay bills at correct time Collect money due as quickly as possible COST OF PAYING SOONER THAN NECESSARY Opportunity cost Cash shortages COST OF PAYING TOO LATE Reputation as a slow payer Jeopardize future credit potential Damage credit rating Placed on COD by suppliers COST OF PAYING TOO LATE (CONT.) Interest and penalties Lose cash discounts Legal problems Poor credit risk Lose good suppliers WHAT IS THE BEST PAYMENT POLICY? The best . | The Optimal Payment Policy 11 Updated Chapter Name, EGM YOU SHOULD BE ABLE TO: Describe and differentiate the tenets of cash management. Identify the major objective of a payment policy. Critique the costs of paying sooner than necessary and of paying too late. Compare and contract the bill-paying procedures that can be employed by hospitality operators. TENANTS OF CASH MANAGEMENT Keep your money as long as possible Pay your bills at the correct time Collect monies due as fast as you can OBJECTIVES OF PAYMENT POLICY Keep money as long as possible Pay bills at correct time Collect money due as quickly as possible COST OF PAYING SOONER THAN NECESSARY Opportunity cost Cash shortages COST OF PAYING TOO LATE Reputation as a slow payer Jeopardize future credit potential Damage credit rating Placed on COD by suppliers COST OF PAYING TOO LATE (CONT.) Interest and penalties Lose cash discounts Legal problems Poor credit risk Lose good suppliers WHAT IS THE BEST PAYMENT POLICY? The best policy is one that allows you to keep your money as long as possible, unless you have a favorable incentive to pay early. THE MECHANICS OF BILL PAYING Paid-outs Invoices on account Credit card payments Bill-paying service Updated Section Heading, EGM ANOTHER WORD ABOUT DISCOUNTS Become intent on discounts May interfere with payment schedule Might stay with discounting supplier longer than should May need to borrow to take advantage of discount Does discount alter payment due date Added Slide, EGM

• Quản trị kinh doanh
• Purchasing selection
• Hospitality industry
• Distribution systems
• Supplier channels
• Hospitality operations
• Optimal payment policy
• Technology applications in purchasing
• Ordering procedures
• Administration of purchasing
• Security in the purchasing function
• Purchasing eggs
• Purchasing poultry
• Purchasing fish
• Purchasing meat
• Purchasing beverages
• The optimal supplier
• The buyer’s relations
• The purchase specification
• The optimal amount
• The optimal price
• Typical ordering procedures
• Typical receiving procedures
• Storage management procedures
• Processed produce
• Dairy products
• Nonfood expense items