Purchasing

Front 1

80-20 Rule

Back 1

See the Pareto Principle

Front 2

Acknowledgement

Back 2

A communication indicating that something has been received or understood.

Hint 2

In purchasing it usually reders to a form that is received from supplier that accepts it sometimes nidifies the purchase order.

Front 3

ASAP

Back 3

As Soon As Possible

Front 4

Asset

Back 4

Items of value, especially what an organization owns

Front 5

ASTM

Back 5

American Society for Testing and Materials

Hint 5

An organization that develops and publishes standard specifiactions on various products.

Front 6

Bartering

Back 6

A type of transaction involving no money or cash where one party provides one type of goods in exchange for another type of giidsm. Bartering can be carried out domestically or globally.

Front 7

BOL

Back 7

Bill of Lading

Hint 7

A written receipt given by a carrier for goods accepted for transportation.

Front 8

BOM

Back 8

Bill of Material

Hint 8

A list of items used in the manufacturing of a product. The list may show which items are required to make sub-assemblies and which sub-assemblies are required tfir the complete product being produced. The list may also indicate which components are manufactured and which are purchased from outside sources if supply.

Front 9

Blanket Order

Back 9

An agreement to purchase or a purchase order for a given quantity of specific goods over a period of time, often one year.

Front 10

BPM

Back 10

Business Process Management

Front 11

Leverage

Back 11

Where an investor or company uses debt to finance its operations rather than using equity.

Front 12

Liability

Back 12

In accounting, it is what a company owes. In law, it is an obligation to do it refrain from doing something; a duty which eventually must be performed; an obligation to pay money.

Front 13

LIFO

Back 13

last-in, First-out

Hint 13

An accounting methodnif of valuing inventory based on the assumption that the last items purchased are the first sold.

Front 14

Materials Management

Back 14

The management function f an organization that may include all it a portion of the responsibility for purchasing, inventory control, traffic, shipping, receiving, and warehousing.

Front 15

MOQ

Back 15

Minimum Order Quantity

Hint 15

The amount required to place an order.

Front 16

MRO

Back 16

Maintenance, Repair, and Operating Supplies

Hint 16

Often assigned to inenir more buyer's in anourhssing organizational structure.

Front 17

OEM

Back 17

Original Equipment Manufacturer

Hint 17

Suppliers usually give lower prices to such buying organization's for purchased of material used in the buying organization's products being made for resale.

Front 18

Pareto Principle

Back 18

A management tool based on writings of Vilfredi Pareto, an Italian economist. The principle is that most of the occurrences of any happening are caused by small percentage of the population. Applied to purchasing management it means that the largest percent of cost reduction can be obtained from a small percentage of the items purchased or from a small percentage of number of suppliers used.

Front 19

PPI

Back 19

Producer Price Indexa numerical figure representing a certain producer Price compared with a base index at an earlier time.

Front 20

Price Index

Back 20

Usually refers to any various numbers representing prices at a particular time for a product or category of products as reported to the Department if Labor, Bureau of Labor Statiscs of the U.S. Government. Average price movements can be measured up or down from the monthly reports issued.

Front 21

Public Company

Back 21

A corporation that issues stock that may be purchased by anyone and as listed in one of the stock exchanges and is controlled by the SEC as compared with private company where stock is only available to certain individuals.

Front 22

PO

Back 22

Purchase Order

Hint 22

The form hat document the pruchase agreements for the organization.

Front 23

Purchasing Agent

Back 23

The person authorized to make purchase agreements for the organization.

Front 24

Quid pro quo

Back 24

Do one thing in return for another.

Front 25

RFID

Back 25

Radio Frequency Identification

Hint 25

A system if marking products electronically so they can be located anywhere from a distant point.

Front 26

RFP

Back 26

Request for Proposal

Front 27

RFQ

Back 27

Request for Quotation

Front 28

Robinson-Patman

Back 28

An antitrust law prohibiting unfair trading practices such as giving a supplier false information about what the buyer is paying another supplier in order to ovatin a lower price.

Front 29

RoHS

Back 29

Restriction of Hazardous Substances

Hint 29

The European Union's directive, effective July 1, 2006, regarding six hazardous materials (lead, cadmium, Mercury, hexavalent chromium, polybrominated biphenyls, and polybrominated diphenyl ethers) used in the manufacturer if electronic and electrical equipment.

Front 30

ROI

Back 30

Return on Investment

Front 31

SCM

Back 31

Supply Chain Management

Front 32

SEO

Back 32

Search Engine Optimization