BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681
BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681

Solutions

Chapter
Section
Chapter 2, Problem 15DQ
Textbook Problem
40 views

What is the difference between a purchase order and a blanket purchase order? What are the advantages of using blanket purchase orders?

Expert Solution
Summary Introduction

To explain: The difference between purchase order and blanket purchase order and the advantages of the blanket purchase order.

The purchasing process:

The purchasing process encompasses all the activities as shown below:

  • Identification of user requirements.
  • Evaluation of the user needs effectively and efficiently.
  • Identification suppliers who are capable to meet the demand.
  • Development of agreement with those suppliers.
  • Development of the ordering mechanism.
  • Ensure that the payment process occurs promptly.
  • Ascertaining that the needs are effectively met and
  • Driving continuous improvement.

Explanation of Solution

Purchase order:

The purchase order will be issued by the buyer as a commercial document in which the buyer will fill the details about the product quantity, agreed price, and other transaction information. It will be issued to the seller in order to control the purchasing process of the service or product.

Blanket purchase order:

Blanket purchase order is the agreement for long-term in which a buyer would place a purchase order with the supplier...

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