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L-2.2 Ch. 11 Purchasing

Horizontales
Person who makes the purchases for an operation; usually a manager orowner.
Money or other goods received by a person in exchange for purchasingfrom a specifi c vendor. Kickbacks are illegal.
Forms fi lled out by an employee listing exactly what items are needed to take out of storageand use in production. After fi lling in the form, the employee gives the form to whoever is in charge of inventory.
The particular businesses that buy and sell a product as it makes its way from its originalsource to a retailer.
An economic good that is a product of agriculture or mining. Examples could include: corn, wheat,oil, sugar, soybeans, steel, and aluminum.
Detailed descriptions of all the characteristics needed to fi ll apurchase need.
The amount of funds available to an operation at any given time.
Term often used to describe the entire bidding process of creating specifi cations,offering them to the suppliers, receiving bids, and awarding a contract.
Verticales
The price retailers pay for the convenience of selecting the time ofdelivery from suppliers.
A legal business relationship in which an independent owner buys the right to use a company’s name,products, and logo. Examples include Subway, McDonald’s, and KFC.
This group includes the farmers and ranchers who raiseproduce and livestock, as well as manufacturers (businesses that make products like kitchen equipment from rawmaterials) and distillers (businesses that produce alcoholic beverages from raw materials like grapes and grains).
Formal requests for items to be ordered or used from storage.
Situation in which an operation controls costs and attracts customers while ensuring it paysa competitively low price for goods and services from vendors.
Specialized, written price lists created for the restaurant by a supplier.
A legally binding written document that details exactly what thebuyer is ordering from the vendor.