and CORRECT Answers
Health Maintenance Organization (HMO) - CORRECT ANSWER - an organization that
provides comprehensive medical care to subscribers for a fixed fee - Provides information and
services designed to prevent illness and minimize extensive care to treat catastrophic
(preventable) illness events
Standing Orders - CORRECT ANSWER - Automatic delivery of a specific amount on a
regular, pre-determined basis
Blanket orders - CORRECT 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 - CORRECT ANSWER - Like blanket orders with less detail - used for boarder
products like for hardware stores
Electronic Requisitions - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Request for items carried in the warehouse/storeroom
Non-stock req - CORRECT ANSWER - Requests for items not carried in
warehouse/storeroom
FOB destination - CORRECT ANSWER - Freight terms indicating that ownership of goods
remains with the seller until the goods reach the buyer.
, FOB shipping point - CORRECT 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 - CORRECT ANSWER - The vendor pays the freight
charges and owns the goods while in transit
FOB shipping point, freight allowed - CORRECT ANSWER - Title passes to facility when
carrier picks-up, supplier pays freight
Value Analysis - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - System in which a supply is delivered to
the end user based on demand.
emergency requisition system - CORRECT 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) - CORRECT ANSWER - system by which desired
level on hand is established and is returned to that level
Manual PAR system - CORRECT ANSWER - PAR area is inventoried on a periodic
basis(daily, semi-weekly)