Verifed Ace the Test
Standing Orders - ANSWER ✔✔Automatic delivery of a specific
amount on a regular, pre-determined basis
Blanket orders - ANSWER ✔✔long-term purchase commitment to a
supplier for items that are to be delivered against short-term releases to
ship. Departments are responsible for calling the vendor to ship.
Open Orders - ANSWER ✔✔Like blanket orders with less detail -
used for boarder products like for hardware stores
,Electronic Requisitions - ANSWER ✔✔preferred methodology
allowing requisitions to be created online and be transmitted to the
storeroom. Non-stock orders can be transmitted directly to the vendor
Traveling Reqs - ANSWER ✔✔older version of a non-stock req. Hard
copy, in-house, reusable req. Prepared by dep. to obtian repeat, non-
stock items that are regularly used
Stock Req - ANSWER ✔✔Request for items carried in the
warehouse/storeroom
Non-stock req - ANSWER ✔✔Requests for items not carried in
warehouse/storeroom
FOB destination - ANSWER ✔✔Freight terms indicating that
ownership of goods remains with the seller until the goods reach the
buyer.
FOB shipping point - ANSWER ✔✔Freight terms indicating that
ownership of goods passes to the buyer when the public carrier accepts
the goods from the seller.
FOB destination, freight prepaid - ANSWER ✔✔The vendor pays the
freight charges and owns the goods while in transit
, FOB shipping point, freight allowed - ANSWER ✔✔Title passes to
facility when carrier picks-up, supplier pays freight
Value Analysis - ANSWER ✔✔A process that determines the best
and most economical procedures, products, equipment, or services that
will reliably and technologically meet the needs of the user while
reducing overall costs.
Purchasing Metrics - ANSWER ✔✔Measures and reports on
performance - Dollars saved, customer satisfaction, cost avoidance,
Volume(lines purchased/contracts renewed on time), Quality measures -
invoice discrepancies, % of purchases on contract
Random Request System - ANSWER ✔✔System in which a supply is
delivered to the end user based on demand.
emergency requisition system - ANSWER ✔✔System in which a
requester travels to the site where the item is stored and then carries
item back to the department
periodic automatic replenishment (PAR) - ANSWER ✔✔system by
which desired level on hand is established and is returned to that level
Manual PAR system - ANSWER ✔✔PAR area is inventoried on a
periodic basis(daily, semi-weekly)
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