Small dollar value purchase orders for MRO can be efficiently and effectively managed by:
A)increasing the number of customized items.
B)implementing a vendor- or supplier-managed inventory system.
C)putting purchases on separate purchase orders.
D)entering into contracts for each item.
E)giving buyers unlimited access to petty cash.

Question

Quizplus · Accepted Answer

Implementing a vendor- or supplier-managed inventory system is the most efficient and effective method for managing small dollar value purchase orders for MRO (maintenance, repair, and operations). This system allows the supplier to monitor and replenish inventory levels based on demand, reducing the need for frequent purchase orders and manual tracking. This frees up time for the purchasing team to focus on more strategic and higher value procurement activities.

Small Dollar Value Purchase Orders for MRO Can Be Efficiently