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ORELSIS
Glossary

What is PO (Purchase order)?

A purchase order (PO) is the document in which a buyer formally tells a supplier the quantity, price and delivery date for goods or services.

In short

A purchase order (PO) is the document in which a buyer formally tells a supplier the quantity, price and delivery date for goods or services.

When calculating net requirements, MRP treats open purchase orders (open POs) as expected receipts, so it does not suggest material that is already on order.

Missed PO delivery dates are one of the most common causes of material shortages in planning.

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