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 the population where each element has the same chance of being selected as every other element in the population; such as to select items from the inspection lot so each item in the lot has an equal chance of being included in the sample. 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 the 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 to or below it, action is taken to replenish stock.