A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:
A) Material requisition
B) Purchase requisition
C) Planned order release
D) Traveling requisition

Question

Quizplus · Accepted Answer

Planned order release is a purchasing method that involves placing orders directly with a supplier for the components needed to manufacture goods over an extended period of time. This method is best suited for companies that produce standard goods and have a stable production schedule, allowing them to plan their material requirements in advance. Material requisition, purchase requisition, and traveling requisition all refer to different forms of procurement that are not applicable to this scenario.

A Form of Purchasing That Is Placed Directly to the Supplier