Introduction to Purchasing and Supplies Management

These flashcards cover key vocabulary terms and concepts from the course on Purchasing and Supplies Management.

Purchasing

The process of buying goods and services, including need identification, supplier selection, and negotiation.

Procurement

A broader term than purchasing that encompasses all activities involved in acquiring goods and services, including purchasing, receiving, and inspection.

Supply Chain Management

A system approach to managing the flow of information, materials, and services from raw materials to end customers.

Economic Order Quantity (EOQ)

The ideal order quantity that minimizes total inventory costs, comprising ordering and carrying costs.

Just-in-Time (JIT)

An inventory management philosophy that aims to reduce waste by receiving goods only as they are needed in the production process.

ABC Analysis

A method of inventory categorization which divides inventory into three categories (A, B, and C) based on their importance and value.

Supplier Assessment

The evaluation process of suppliers to ensure they meet specific criteria related to quality, price, and delivery.

Outsourcing

The practice of obtaining goods or services from external sources rather than producing them internally.

Inventory Control

The process of managing and overseeing inventory levels to ensure adequate supply while minimizing holding costs.

Ethical Principles in Purchasing

Standards guiding purchasing professionals to act with integrity, avoid conflicts of interest, maintain supplier relationships, and ensure fair practices.