ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Form used for submitting orders to a supplier.
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Counting every item in storage by hand.
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A place where the supplies are unloaded, usually near where they will be stored.
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Business from whom supplies are purchased.
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Detailed explanation-1: -A purchase order form is used as an official record and contractual agreement of the business transaction between buyer and supplier, and outlines key information of the order. It is important for record keeping, auditing, and matching the PO to the invoice in order to issue payment.
Detailed explanation-2: -A purchase order (PO) is a legal document sent by a buyer to their supplier. It demonstrates their commitment to pay for specific products and/or services from a seller, and establishes terms for payment. A PO communicates the buyer’s needs to the seller, and establishes their expectations for the transaction.
Detailed explanation-3: -The purchase order is a document generated by the buyer and serves the purpose of ordering goods from the supplier. The invoice, on the other hand, is generated by the supplier and shows how much the buyer needs to pay for goods bought from the supplier.
Detailed explanation-4: -By submitting an order, the buyer is committing to purchasing goods or services for the agreed upon amount. Because the order is filled before the buyer receives their bill, a purchase order gives the seller insurance against non-payment.