A Purchase Order Is

question 52

Multiple Choice

A purchase order is

• A) a document formally requesting a vendor to sell a certain product at a certain price.
• B) a request for delivery of certain items and quantities.
• C) a contract between the buyer and vendor once accepted by the vendor.
• D) All of the above are true.

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Definitions:

Gross Requirement

The total demand for an item, including both independent demand from customers and dependent demand from the production of other items.

Bill Of Material

A comprehensive list of raw materials, components, and assemblies required to construct, manufacture, or repair a product or service.

Material Requirements Plan

A system used in manufacturing to calculate the materials and components needed to manufacture a product, ensuring materials are available for production and products are available for delivery.

Subassemblies

Components that are assembled separately but are used as parts of a final assembly or finished product.