A Reorder of an Existing Product or Service from a List

question 107

Multiple Choice

A reorder of an existing product or service from a list of acceptable suppliers is referred to as a

• A) new buy.
• B) straight rebuy.
• C) modified rebuy.
• D) standard reorder.
• E) make-buy.

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Definitions:

Accounts Payable

Liabilities to creditors, representing the obligation to pay for goods and services received, usually within a short period of time.

Economic Order Quantity (EOQ)

A formula used by businesses to determine the optimal order quantity to minimize total inventory costs.

Carrying Costs

The total cost of holding inventory, which includes warehousing, insurance, spoilage, and opportunity costs.

Ordering Costs

Expenses associated with placing orders for inventory, including administrative expenses, delivery charges, and any other costs related to buying goods or services.