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4.02 Key Terms

Purchasing The buying of goods and services for a business.
Purchasing Order The form that a business fills out to order goods; may be the same as a purchase agreement or purchase contract.
Purchasing Process A series of sequential steps taken by purchasing specialists to buy goods and services for a business.
Reorder The reorder point (or reorder level) is the inventory level at which a company would place a new order or start a new manufacturing run.
Cash Flow The total amount of money being transferred into and out of a business, especially as affecting liquidity.
Inventory A complete list of items such as property, goods in stock, or the contents of a building.
Usage The action of using something or the fact of being used.
Lead Time The time between the initiation and completion of a production process.
Supply Chain The sequence of processes involved in the production and distribution of a commodity.
Incentives A payment or concession to stimulate greater output or investment.
Created by: drakon0130



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