Dictionary of Procurement Terms

Estimating future needs to avoid stock outs or oversupply.

A technique used to determine the quantity of dependent demand materials used in a planning period. May be used to schedule and control production, inventory levels, and deliveries from outside ​suppliers.

Typically, a non-federal procurement term for a method and core supply chain function that may include purchasing, storage, transportation, forecasting, inventory control, inspection, and quality control to facilitate the flow of materials throughout the entity from delivery of materials to receipt by the end user.

A warehouse or military term for equipment, supplies, and apparatus used by a warehouse or the military.

Typically, a federal procurement term for a method and core supply chain function that may include purchasing, storage, transportation, forecasting, inventory control, inspection, and quality control to facilitate the flow of materials throughout the entity from delivery of materials to receipt by the end user.

Purchases made outside of procurement policies and procedures or established contracts.

The level that represents the maximum amount of stock of an item that may be held.

Denotes the permissive in a contract clause or specification.

Minority Business Enterprise.

The arithmetic average. The average value of a set of numbers. (Business, 2002)