Style Questions with Key Terms, Distribution,
Inventory & Compliance Review.
stock requisition
Request sent to the warehouse for product stored there
Electronic requisition
Newer technique for ordering, commonly ordered, nonstock items
traveling requisition
An older technique for ordering, commonly ordered non-stock items
Non-Stock Requisition
Is prepared by the department not carried in warehouse or store room.
It is used for one-time or repetitive type purchases.
Repetitively ordered non-stock generally be added to item master
Open order
A pre-negotiated agreement with a supplier that does not require a specific purchase order.
standing order
The delivery of a specific amount of product on a regular basis.
blanket order
Are a long-term purchase commitment to a supplier for items that are to be delivered against short-
term releases to ship.
If equipment is damaged en route under F O B destination, who is responsible for shipping charges and
filing the damage claims?
The supplier, is responsible for both the shipping charges, and for filing a damage claim.
If equipment is damaged en route under F O B shipping point, who is responsible for shipping charges
and filing the damage claims?
The receiver, is responsible for both shipping charges and filing a damage claim.
If equipment is damaged en route under F O B destination, prepaid freight, and add, who is responsible
for shipping charges and filing the damage claims?
The receiver pays the shipping charges as a portion of their invoice, and the supplier is responsible for
filing the damage claim.
, If equipment is damaged en route under F O B shipping point, freight allowed, who is responsible for
shipping charges and filing the damage claims?
The supplier reimburses the receiver for the shipping charges, will but the receiver is responsible for
filing a damage claim.
Which type of request is least likely to lead to an agreement? R F I , R F P , or , R F Q?
Request for information, R,F,I
Does sending me a purchase order to a vendor normally create a legally binding contract?
No , it does not, the vendor has to except it first.
Bulk buys are a good way to decrease purchase cost, but there is a resulting increase in Holding cost.
True
How do you find inventory turns for a product?
By dividing a facilities total annual inventory purchases, by the ending inventory value.
What counting occurs at regular, predetermined intervals, while a department is shut down?
Periodic counting
What type of counting occurs throughout the year, by counting specific groups of inventory each
month?
Cycle counting
When completing an ABC analysis of inventory items, priority A items, are of the least priority when
evaluating inventory control measures.
False
Leadtime is a calculation of supply demand from the time it takes to place an order from the time the
order item is depleted.
False
What is leadtime?
Time interval between ordering and receiving the order
Safety stock is inventory that protects against a stock out.
True
The longer the lead time, the less available inventory.
False
What category of supplies do office supplies belong to?