Dictionary of Procurement Terms

A wireless system with tags that communicate identifying and other information via radio waves to a nearby reader.

A technique that results in a representative subset of a population whereby each element has the same chance of being selected as every other element in that population (e.g., selecting items from an inspection lot so each item in the lot has an equal chance of being included in the sample). Random sampling is a form of quality assurance often used in modern polling, market research, and manufacturing.

As applied to the transportation or movement of goods and material, the cost of, or charge, that applies to the service rendered by a carrier.

An unprocessed, basic material, input, or resource used in the manufacture of finished parts or products.

The quantity of goods required to sustain operations for a specified period of time, after which time orders will be placed for more goods.

A predetermined stock level such that, if the net stock falls at or below that level, action is taken to replenish the stock.